Tangem Says Two-Thirds of Crypto Users See Self-Custody as Important

Two out of three cryptocurrency users view self-custody as important, according to a new report, underscoring how hardware wallets such as cold wallets are evolving beyond simple storage tools into gateways to the on-chain economy.

Swiss hardware wallet maker Tangem released a report on July 1 titled “From Custody to Participation: The Rise of Active Self-Custody,” prepared by consumer research and strategy insights firm Protocol Theory. The report analyzed self-custody usage based on a survey of about 3,200 US crypto users age 18 and older.

The report found that self-custody is expanding beyond storage into a broader tool for managing, deploying and spending crypto assets. Users retain control of their private keys while using wallets to manage assets and payments and interact with on-chain applications such as DeFi.

Tangem said the shift is also reflected in its own growth. Revenue rose to about $60 million last year, up more than 100% from a year earlier. Monthly active users increased 50% over the same period. The company said demand is rising from users who want to do more than store crypto and instead manage and use it directly.

The report also challenged the view that hardware wallets are primarily for long-term storage. Just 9% of cold wallet users described themselves as “passive holders,” according to the survey. That compared with 25% of users of centralized exchanges, or CEXs.

Cold wallet usage is also becoming more varied. Among cold wallet users, 77% said they directly buy, sell or hold crypto through their wallets. Another 46% actively managed stablecoins, while 43% managed assets across multiple wallets and blockchains. Some 41% said they regularly used crypto for payments, and 30% said they used wallets connected to Web3 applications.

Still, the report highlighted a gap between recognition of self-custody's importance and actual cold wallet adoption. While 66% of crypto users said self-custody is important, only 15% said they use a cold wallet. Although 46% said they worry about hacks at major exchanges, 88% still store crypto on centralized exchanges.

The biggest obstacle to cold wallet adoption was that users did not feel they needed one, cited by 32% of respondents. Another major factor was the perception that cold wallets are only necessary for large holders or long-term investors. Cost was cited by 17%, while 19% pointed to complexity.

“The demand itself is not the barrier,” the report said. “Education and hands-on experience with self-custody will be the key drivers of broader adoption.”