Two out of three cryptocurrency users recognize self-custody as important, but adoption lags dramatically behind awareness. A new report from hardware wallet maker Tangem found that while 66% of crypto users say self-custody matters, only 15% actually use cold wallets to store their assets. This gap between belief and behavior reveals a critical challenge facing the crypto industry as it matures: the disconnect between understanding security principles and taking action on them.

What Is Self-Custody and Why Does It Matter?

Self-custody means you hold the private keys to your crypto assets directly, rather than trusting a third party like a centralized exchange to manage them for you. When you use a cold wallet, a hardware device that stores your private keys offline, you maintain complete control over your funds. This contrasts with keeping crypto on centralized exchanges (CEXs), where the exchange holds your keys and you rely on their security practices.

The importance of self-custody became clearer as the industry evolved. Tangem's report, titled "From Custody to Participation: The Rise of Active Self-Custody," analyzed responses from approximately 3,200 U.S. crypto users age 18 and older. The research, conducted with consumer research firm Protocol Theory, found that self-custody is no longer just about storing assets safely. Instead, it has become a gateway to active participation in the broader crypto economy.

How Are Cold Wallet Users Actually Using Their Assets?

One of the most striking findings in the Tangem report challenges a common misconception: that hardware wallets are primarily for passive long-term storage. The data tells a different story. Among cold wallet users surveyed, just 9% described themselves as "passive holders," compared to 25% of centralized exchange users. This suggests that people who take control of their private keys are more likely to actively manage their portfolios.

Cold wallet users are engaging in a diverse range of activities beyond simple storage:

• Direct Trading: 77% of cold wallet users directly buy, sell, or hold crypto through their wallets.
• Stablecoin Management: 46% actively managed stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar.
• Multi-Chain Asset Management: 43% managed assets across multiple wallets and blockchains.
• Crypto Payments: 41% regularly used crypto for payments.
• Web3 Application Access: 30% used wallets connected to decentralized applications (dApps) for activities like lending, borrowing, and trading.

This shift reflects broader industry growth. Tangem reported that its own revenue rose to approximately $60 million last year, more than doubling from the prior year, while monthly active users increased 50% over the same period. The company attributed this growth to rising demand from users who want to do more than simply store crypto; they want to manage and use it directly.

Why Don't More People Use Cold Wallets If They See the Value?

The gap between awareness and adoption reveals several barriers preventing broader cold wallet adoption. The Tangem report identified the primary obstacles users face:

• Perceived Lack of Need: 32% of respondents said they did not feel they needed a cold wallet, the single largest barrier cited.
• Misconceptions About Who Needs Them: Many users believe cold wallets are only necessary for large holders or long-term investors, not for everyday users.
• Complexity Concerns: 19% pointed to the perception that cold wallets are too complicated to use.
• Cost: 17% cited the price of hardware wallets as a barrier to entry.

Perhaps most revealing is the behavior of centralized exchange users. While 46% of CEX users worry about hacks at major exchanges, 88% still store their crypto on those same platforms. This suggests that concern alone does not drive action; users need education and practical experience to overcome inertia.

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

Tangem Report, "From Custody to Participation: The Rise of Active Self-Custody"

How Is the Industry Responding to Self-Custody Demand?

Major players in crypto are working to make self-custody more accessible and practical. Bitget Wallet, a self-custodial wallet serving 90 million users worldwide, recently announced a partnership with Robinhood Crypto to integrate Robinhood Chain, an Ethereum Layer 2 (L2) blockchain built for tokenized real-world assets (RWAs). This integration allows Bitget Wallet users to trade over 90 stock tokens, including mega-cap companies like NVIDIA, Google, and Apple, directly within a self-custody wallet without needing a brokerage account.

Robinhood Chain operates as a permissionless network designed for onchain stocks, exchange-traded products (ETPs), and private market assets to be settled onchain under self-custody. The network is built using Arbitrum's Orbit technology and is open to third-party developers, exchanges, and lending platforms, creating a full financial ecosystem rather than a single protocol.

"Millions of people want access to global markets but face real barriers, account requirements, market hours, geography. This partnership removes those barriers, stock tokens representing some of the world's most traded companies, no brokerage required, through one onchain account. This is what it looks like when traditional finance and onchain infrastructure meet, institutions tokenizing real-world assets, with self-custody built in from the start," said Alvin Kan, Chief Operating Officer of Bitget Wallet.

Alvin Kan, Chief Operating Officer, Bitget Wallet

This development signals a broader shift in the industry. Rather than asking users to choose between traditional finance and crypto, platforms are building infrastructure that combines both within self-custody frameworks. The integration became live on mainnet, with full trading, market data, and dApp access rolling out in the coming weeks.

What Does This Mean for the Future of Crypto Wallets?

The Tangem report and recent industry partnerships suggest that self-custody is evolving from a niche concern for security-conscious users into a mainstream expectation. As more institutional assets move onchain through tokenization, the infrastructure supporting self-custody must improve to meet demand. Hardware wallets are no longer simple storage devices; they are becoming sophisticated gateways to a broader financial ecosystem that includes trading, lending, payments, and access to decentralized applications.

The challenge ahead is not convincing users that self-custody matters, the Tangem data shows they already understand that. Instead, the industry must focus on education and hands-on experience, making it easier for users to understand when and how to use self-custody tools. As platforms like Bitget Wallet and Robinhood Chain demonstrate, the path forward involves building user-friendly interfaces that handle complex security requirements automatically, removing friction without sacrificing control.

For crypto users, the message is clear: self-custody is becoming the standard, not the exception. The gap between awareness and adoption will likely narrow as more platforms integrate self-custody into everyday financial activities, from trading stocks to managing stablecoins to accessing decentralized finance applications.