.jpg)
Nickel: Increased digital asset allocations hinge on improved security
27 August 2026 UK
Image: FutureLogic Studio/stock.adobe.com
Substantial benefits could be seen by the digital asset sector if custody and securities standards at traditional financial firms are met, shows new global research from Nickel Digital Asset Management (Nickel).
92 per cent of those polled say they would be likely to increase digital asset allocations in response to enhanced security and custody standards.
The study polled over 200 institutional investors and wealth managers and identified that high-profile hacks, exchange failures, and DeFi exploits have a major impact on firms’ willingness to invest in the sector.
Nearly half identified cybersecurity or hacking risks as the biggest barrier preventing them from increasing allocations, with 43 per cent citing custody and private key management as the biggest barrier.
Nickel’s study also found that organisations are split on which security safeguard would do the most to increase allocations; around 19 per cent want regulated institutional custody with independent audits, while 17 per cent say comprehensive crime or cyber insurance is preferred, and 16 per cent would choose independent proof of reserves and liability.
Institutional investors and wealth managers are most likely to be comfortable with asset manager managed custody with independent oversight, which was chosen by 38 per cent of survey respondents, while 27 per cent would like specialist regulated digital asset custodian, and 20 per cent preferring direct custody with a regulated bank or trust company.
57 per cent of those surveyed said they would be comfortable fainting exposure to DeFi of yield-generating digital asset strategies only with audited smart contracts and ongoing monitoring; 44 per cent would be happy with conservative collateral and liquidity controls.
Anatoly Crachilov, CEO and founding partner at Nickel Digital, says: “Institutional digital asset infrastructure has come a long way. At Nickel, we have seen that evolution first-hand and have spent years developing the risk management, custody, and counterparty frameworks required to operate institutional capital responsibly in this market.
Crachilov adds: “Digital assets still have some way to go before custody and security standards consistently match those that investors expect from traditional prime brokers and custodians. The opportunity for firms that can bridge that gap is substantial.”
92 per cent of those polled say they would be likely to increase digital asset allocations in response to enhanced security and custody standards.
The study polled over 200 institutional investors and wealth managers and identified that high-profile hacks, exchange failures, and DeFi exploits have a major impact on firms’ willingness to invest in the sector.
Nearly half identified cybersecurity or hacking risks as the biggest barrier preventing them from increasing allocations, with 43 per cent citing custody and private key management as the biggest barrier.
Nickel’s study also found that organisations are split on which security safeguard would do the most to increase allocations; around 19 per cent want regulated institutional custody with independent audits, while 17 per cent say comprehensive crime or cyber insurance is preferred, and 16 per cent would choose independent proof of reserves and liability.
Institutional investors and wealth managers are most likely to be comfortable with asset manager managed custody with independent oversight, which was chosen by 38 per cent of survey respondents, while 27 per cent would like specialist regulated digital asset custodian, and 20 per cent preferring direct custody with a regulated bank or trust company.
57 per cent of those surveyed said they would be comfortable fainting exposure to DeFi of yield-generating digital asset strategies only with audited smart contracts and ongoing monitoring; 44 per cent would be happy with conservative collateral and liquidity controls.
Anatoly Crachilov, CEO and founding partner at Nickel Digital, says: “Institutional digital asset infrastructure has come a long way. At Nickel, we have seen that evolution first-hand and have spent years developing the risk management, custody, and counterparty frameworks required to operate institutional capital responsibly in this market.
Crachilov adds: “Digital assets still have some way to go before custody and security standards consistently match those that investors expect from traditional prime brokers and custodians. The opportunity for firms that can bridge that gap is substantial.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
