Saudi Arabia Crypto Custody Solutions Market Size, Share, Trends & Forecast 2025-2030

Saudi Arabia Crypto Custody Solutions Market valued at USD 1.2 Bn, driven by crypto adoption, institutional investments, and secure storage needs amid regulations.

The Saudi Arabia Crypto Custody Solutions Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of cryptocurrencies, the rise in institutional investments, and the growing need for secure storage solutions. The market has seen a surge in demand for reliable custody services as more investors seek to protect their digital assets amidst rising cyber threats.

Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their robust financial infrastructure and the presence of major financial institutions. Riyadh, being the capital, serves as a hub for regulatory developments and innovation in the fintech sector, while Jeddah and Dammam contribute significantly through their strategic ports and trade activities, facilitating the growth of crypto custody solutions.

In 2023, the Saudi Arabian Monetary Authority (SAMA) implemented regulations requiring all crypto custody service providers to obtain a license and adhere to strict security protocols. This regulation aims to enhance consumer protection and ensure the integrity of the financial system, thereby fostering a safer environment for cryptocurrency transactions and investments.

Saudi Arabia Crypto Custody Solutions Market Segmentation

By Type:

The market is segmented into various types of custody solutions, including Cold Storage Solutions, Hot Wallet Solutions, Multi-Signature Solutions, Institutional Custody Services, Retail Custody Solutions, Hybrid Custody Solutions, and Others. Cold Storage Solutions are gaining traction due to their enhanced security features, while Institutional Custody Services are increasingly preferred by large financial entities for their comprehensive management and regulatory compliance.

By End-User:

The end-user segmentation includes Financial Institutions, Corporates, High-Net-Worth Individuals, Retail Investors, Government Entities, and Others. Financial Institutions are the leading end-users due to their need for secure and compliant custody solutions, while High-Net-Worth Individuals are increasingly seeking personalized services to manage their digital assets effectively.

Saudi Arabia Crypto Custody Solutions Market Competitive Landscape

The Saudi Arabia Crypto Custody Solutions Market is characterized by a dynamic mix of regional and international players. Leading participants such as BitGo, Coinbase Custody, Fidelity Digital Assets, Kingdom Trust, Anchorage, Gemini Custody, Ledger Vault, Fireblocks, Bakkt, Trustology, Copper, Komainu, Zodia Custody, Cobo, Onchain Custodian contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Crypto Custody Solutions Market Industry Analysis

Growth Drivers

Increasing Institutional Investment:

The Saudi Arabian financial landscape is witnessing a surge in institutional investment, with over SAR 1.5 billion (approximately USD 400 million) allocated to digital assets in future. This trend is driven by the Kingdom's Vision 2030 initiative, which aims to diversify the economy and enhance the financial sector. Institutions are increasingly recognizing the potential of crypto assets, leading to a growing demand for secure custody solutions to manage these investments effectively.

Regulatory Clarity and Support:

The Saudi government has made significant strides in establishing a regulatory framework for cryptocurrencies, with the Capital Market Authority (CMA) issuing guidelines in future. This regulatory clarity has encouraged local and foreign investors to engage in the crypto market, with an estimated 30% increase in crypto-related businesses registered in the Kingdom. Such supportive measures are vital for fostering a secure environment for crypto custody solutions.

Rising Demand for Secure Digital Asset Management:

As the adoption of cryptocurrencies grows, so does the need for secure digital asset management solutions. In future, the number of crypto wallets in Saudi Arabia reached 1.2 million, reflecting a 50% increase from the previous year. This surge indicates a heightened awareness of the importance of secure custody solutions, driving demand for services that can protect these assets from theft and loss.

Market Challenges

Cybersecurity Threats:

The crypto custody sector faces significant cybersecurity threats, with a reported increase in hacking incidents targeting digital asset platforms. In future alone, losses from crypto-related hacks exceeded SAR 500 million (approximately USD 133 million) globally. This alarming trend poses a challenge for custodians in Saudi Arabia, as they must invest heavily in advanced security measures to protect client assets and maintain trust.

Lack of Consumer Awareness:

Despite the growing interest in cryptocurrencies, consumer awareness remains low in Saudi Arabia. A future survey indicated that only 25% of the population understands the concept of crypto custody solutions. This lack of knowledge hampers market growth, as potential users may hesitate to engage with custody services due to fears of complexity or security risks, necessitating educational initiatives to bridge this gap.

Saudi Arabia Crypto Custody Solutions Market Future Outlook

The future of the Saudi Arabia crypto custody solutions market appears promising, driven by increasing institutional participation and regulatory support. As the government continues to refine its framework, more financial institutions are likely to enter the market, enhancing competition and innovation. Additionally, advancements in technology, such as AI and blockchain integration, will further improve security and efficiency in custody solutions, positioning Saudi Arabia as a regional leader in digital asset management.

Market Opportunities

Expansion of Financial Services:

The integration of crypto custody solutions into traditional financial services presents a significant opportunity. With over 50% of Saudi banks exploring blockchain technology, partnerships can enhance service offerings, attracting a broader customer base and increasing market penetration.

Development of Innovative Custody Solutions:

There is a growing opportunity for the development of innovative custody solutions tailored to local needs. With the rise of decentralized finance (DeFi), custodians can create products that cater to both retail and institutional investors, potentially increasing market share and driving revenue growth.