Tangem: Two-Thirds Of Crypto Users Support Self-Custody As Hardware Wallets Evolve Beyond Asset Protection

Swiss hardware wallet manufacturer Tangem has released an independent research report examining the changing role of self-custody in the digital asset market. The study, titled From Storage to Participation: The Rise of Active Self-Custody, was commissioned by Tangem and prepared by independent consumer research and strategic insights firm Protocol Theory. Based on responses from more than 3,100 cryptocurrency users in the United States, the report explores how investors are increasingly using self-custody products beyond their traditional function as secure storage.

According to the report, the concept of Active Self-Custody reflects a shift in how digital assets are managed. Rather than relying on hardware wallets solely for long-term storage, users are increasingly utilizing them to store, transfer, spend and manage cryptocurrencies while maintaining control over their private keys. The research suggests that self-custody wallets are evolving into a central access point for decentralized finance, blockchain applications and digital payments without requiring users to transfer asset ownership to third parties.

Tangem also highlighted its own business performance as an indicator of this trend. The company reported revenue of $61.3 million in 2025, representing year-over-year growth of 102%, while monthly active users increased by 50%, driven by greater engagement with in-app services. According to the company, these figures reflect rising demand for self-custody products that support active participation in the digital asset ecosystem.

Research Points to Growing Role of Self-Custody

The findings challenge the perception that hardware wallets are used primarily by long-term holders. According to the report, only 9% of cold wallet users identified themselves as passive investors, compared with 25% of users who keep assets on centralized cryptocurrency exchanges. Active traders were also found to be 1.8 times more likely to use cold wallets than passive investors, suggesting that self-custody has become increasingly integrated into active investment strategies.

The research found that 77% of cold wallet users buy, sell or hold digital assets directly through their wallets, while 46% actively manage stablecoins. In addition, 43% reported managing assets across multiple wallets and blockchain networks, 41% regularly use cryptocurrencies for payments, and 30% connect their wallets to Web3 applications. The report concludes that hardware wallets are increasingly serving as operational tools for managing on-chain activity rather than functioning solely as secure storage devices.

“For years, the industry treated self-custody as the place where assets were moved once users were done using them. That model no longer reflects reality. Today’s wallet is becoming the interface where users can securely manage, deploy, and grow their assets without ever giving up ownership,” said Darya Karpukova, CCO of Tangem in a written statement. “Active Self-Custody bridges security and everyday utility, and this report confirms what our own data has been telling us for some time,” she added. 

The report also identified a significant gap between the perceived importance of self-custody and its actual adoption. While 66% of surveyed cryptocurrency users said self-custody is important, only 15% currently use cold wallets. According to the findings, 88% continue to store digital assets on centralized exchanges despite 46% expressing concerns about major exchange security breaches.

Researchers found that the most common obstacles to adopting cold wallets were the belief that they are unnecessary or intended only for large portfolios and long-term investors, followed by concerns over complexity and cost. The report also indicated that adoption rises substantially as users become more familiar with self-custody technology, with awareness of cold wallets remaining significantly lower than familiarity with centralized exchanges and software wallets.

“What the data shows is a persistent gap between how self-custody is perceived by non-users and how it is used in practice,” said Jonathan Inglis, Founder & CEO of Protocol Theory in a written statement. “Cold wallets are still widely associated with passive storage, even as their role increasingly extends across storing, growing, and spending. That gap in understanding is limiting perceived relevance and slowing broader adoption,” he added. 

The research further suggests that users with direct experience of self-custody generally hold more favorable views of the technology than those relying exclusively on centralized exchanges. Experienced users were more likely to consider self-custody secure, flexible and compatible with decentralized applications. They were also more likely to believe it could be adopted gradually without abandoning centralized platforms or exposing large amounts of capital to risk.

According to the report, these findings indicate that the primary challenge for wider self-custody adoption is no longer usability but user confidence and education. The study concludes that greater familiarity with self-custody tools could support broader adoption as digital asset management platforms continue to evolve.

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