Digital Asset Custody Trends in Middle East and Africa

This technical report examines the trends in digital asset custody among financial institutions and enterprises in the Middle East and Africa (MEA). It outlines the current landscape of digital asset adoption, highlighting that 40% of finance and enterprise firms in MEA are currently using digital asset custody, with an additional 56% planning to adopt it within the next three years. The report details the two primary custody models: self-custody and managed custody, explaining their respective advantages and limitations. The self-custody model allows institutions to retain full control over their private keys, while the managed custody model involves third-party providers responsible for safeguarding clients' assets. The report also discusses the growing appetite for digital assets in MEA, driven by economic factors and regulatory developments, and emphasizes the importance of a robust crypto custody environment as a critical enabler for market growth. Insights from a recent survey of finance leaders are included to support the findings.