Cybersecurity remains the top concern for institutions allocating capital into digital assets. A recent Deloitte study found that 72% of institutional investors identified cyberattacks as the most significant operational risk in custody. With rising sophistication of threat actors, benchmarks now place greater weight on adaptive monitoring and zero-trust frameworks.
Industry analysts note that regulators are also sharpening their oversight, demanding more evidence of independent audits and stress testing. This regulatory pressure has accelerated the shift toward real-time detection and resilience planning.
Key Benchmark Categories in 2025
The latest benchmarks compare leading global custodians across four primary categories:
1. Identity and Access Controls
- Strong MFA adoption: Nearly 95% of institutional custodians now enforce multi-factor authenticationfor both clients and employees, up from 82% in 2023.
- Role-based access: Most custodians employ granular access controls, limiting exposure to sensitive systems.
2. Data Encryption and Storage Security
- End-to-end encryptionhas become standard, with custodians encrypting both data at rest and in transit.
- Cold-storage solutions remain a benchmark, though hybrid custody models are growing, pairing offline storage with controlled online access for faster transactions.
3. Incident Detection and Response
- Despite better monitoring, only 62% of custodians tested demonstrated robust 24/7 security operations centers (SOCs).
- Response drills and simulationswere lacking in several providers, signaling a gap in operational readiness.
4. Third-Party and Cloud Risk
- Custodians increasingly rely on cloud infrastructure. This raises concerns about concentration risk.
- Benchmarks highlight that only half of surveyed custodians maintain continuous monitoring of third-party vendors.
Major Shifts in the Benchmark Update
The 2025 update reveals several notable trends among custody providers:
- Expansion of Zero-Trust Architectures: Custodians are implementing zero-trust access controls across all infrastructure layers.
- AI-Enabled Detection Systems: Automated scanners and anomaly-detection platforms are increasingly embedded in custody operations to monitor live contracts and transactions.
- Incident Response Transparency: Providers are disclosing more details of resilience testing, including red-team simulations and recovery timelines.
- Third-Party Oversight: Greater scrutiny is being applied to vendor relationships, with independent validation of cloud and IT service providers.
These shifts underscore a growing industry consensus: cyber resilience is not static, but an ongoing process requiring continuous evaluation and upgrades.
Looking Ahead
Experts forecast continued growth in tokenized securities and stablecoin adoption in 2025, further increasing the importance of custodial resilience. We can expect:
- Stronger cross-border regulatory expectations, especially from the U.S. SEC and European regulators.
- More partnerships between custodians and cyber intelligence firms to share threat data.
- Development of industry-wide incident response frameworks to prevent contagion effects.
The direction is clear: custodians will need to balance scalability with uncompromising cyber defense.
Impact on Institutional Decision-Making
For institutions selecting custody partners, the updated benchmarks offer a clearer basis for evaluation. The ability to measure cyber risk practices across providers—rather than relying on marketing claims—creates a more transparent marketplace.
Institutions are advised to assess alignment with these benchmarks, particularly around resilience testing, monitoring capabilities, and third-party risk management. Benchmarking data suggests that the providers most committed to transparency and independent verification are also the ones best positioned to build institutional trust.
Stay Ahead with Kenson Investments
At Kenson Investments, we help institutional investors evaluate custodians not only on their financial performance but also on their cyber resilience. With cyber risks shaping the future of digital asset custody, choosing the right partner is crucial.
Contact Kenson Investments today to learn how our insights can guide your custody strategy and safeguard your assets in an evolving digital landscape.
Disclaimer: The information provided on this page is for educational and informational purposes only and should not be construed as financial advice. Crypto currency assets involve inherent risks, and past performance is not indicative of future results. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.
“The crypto currency and digital asset space is an emerging asset class that has not yet been regulated by the SEC and US Federal Government. None of the information provided by Kenson LLC should be considered as financial investment advice. Please consult your Registered Financial Advisor for guidance. Kenson LLC does not offer any products regulated by the SEC including, equities, registered securities, ETFs, stocks, bonds, or equivalents”
