Saudi Arabia Digital Asset Custody Market
Description
Saudi Arabia Digital Asset Custody Market Overview
The Saudi Arabia Digital Asset Custody Market is valued at USD 1.2 billion, based on a five-year historical analysis of the Middle East cloud-based digital asset custody platforms market. This growth is primarily driven by the increasing adoption of digital assets among institutional investors, the expansion of tokenized financial instruments, and the rising demand for secure storage solutions. Additional growth drivers include the integration of advanced security technologies such as multi-party computation (MPC) and cold-hot wallet infrastructure, as well as the entry of regulated custodial platforms that align with global best practices.
Key cities such as Riyadh and Jeddah continue to dominate the market due to their status as financial hubs, attracting both local and international investors. The presence of major financial institutions and investment firms in these cities further enhances their dominance, as they seek reliable custody solutions for digital assets. Institutional depth is supported by Vision 2030’s emphasis on capital market development and digital transformation.
In 2023, the Saudi Central Bank (SAMA) issued the “Digital Asset Custody Guidelines, 2023” mandating that all custodians must comply with strict security protocols, including multi-factor authentication, cold storage requirements, and robust risk management practices. The guidelines require custodians to obtain licensing, maintain minimum capital thresholds, and undergo periodic audits to ensure investor protection and the integrity of digital asset transactions within the kingdom.
Saudi Arabia Digital Asset Custody Market Segmentation
By Type:
The market is segmented into various types of custody solutions, including Institutional Custody, Retail Custody, Multi-Signature Custody, Cold Storage Solutions, Hot Wallet Custody, Custody for NFTs & Tokenized Assets, MPC-Based Custody Solutions, and Others. Each of these sub-segments caters to different customer needs and preferences, with varying levels of security and accessibility. Institutional custody solutions are preferred by banks and asset managers for their compliance features and robust risk controls, while retail custody and hot wallet solutions offer greater accessibility for individual investors. Multi-signature and MPC-based custody solutions are increasingly adopted for enhanced security and operational flexibility, particularly for tokenized assets and NFTs.
By End-User:
The end-user segmentation includes Financial Institutions (Banks, Asset Managers), Corporates & Enterprises, High-Net-Worth Individuals (HNWI), Retail Investors, and Government & Public Sector. Each segment has unique requirements for digital asset custody, influencing the types of services offered. Financial institutions prioritize regulatory compliance and advanced security, corporates seek integrated solutions for treasury and investment management, HNWIs demand personalized custody and insurance, while retail investors and the public sector focus on accessibility and transparency.
Saudi Arabia Digital Asset Custody Market Competitive Landscape
The Saudi Arabia Digital Asset Custody Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Digital Asset Custody Company (SDACC), Alinma Investment, SEDCO Capital, Riyad Capital, SNB Capital (formerly NCB Capital), Al Rajhi Capital, Samba Capital, Arab National Bank, Albilad Investment, Aljazira Capital, Emirates NBD, Abu Dhabi Commercial Bank, Qatar National Bank, Gulf Bank, Bank Albilad, Fireblocks, BitGo, Komainu, Zodia Custody, Standard Chartered (Zodia Markets) contribute to innovation, geographic expansion, and service delivery in this space.
Saudi Digital Asset Custody Company (SDACC)
2021
Riyadh, Saudi Arabia
Alinma Investment
2008
Riyadh, Saudi Arabia
SEDCO Capital
1974
Jeddah, Saudi Arabia
Riyad Capital
2008
Riyadh, Saudi Arabia
SNB Capital
2007
Riyadh, Saudi Arabia
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Total Assets Under Custody (USD Millions)
Number of Institutional Clients
Revenue Growth Rate (%)
Market Share (%)
Compliance Certifications (e.g., SAMA, ISO/IEC 27001)
Saudi Arabia Digital Asset Custody Market Industry Analysis
Growth Drivers
Increasing Institutional Adoption:
The Saudi Arabian financial sector is witnessing a surge in institutional adoption of digital assets, with over 30% of financial institutions actively exploring blockchain technology in future. This trend is supported by the Saudi Central Bank's initiatives to integrate digital currencies into the banking system, aiming for a 20% increase in digital asset transactions. Institutional players are expected to manage assets worth approximately SAR 1 billion (USD 267 million) in digital custody solutions, driving market growth significantly.
Regulatory Clarity and Support:
The Saudi government is actively working to establish a clear regulatory framework for digital assets, with the Financial Sector Development Program aiming to finalize regulations in future. This initiative is expected to enhance investor confidence, as evidenced by a 40% increase in inquiries from potential investors regarding digital asset custody services. The establishment of a regulatory body will further facilitate compliance, encouraging more firms to enter the market.
Rising Demand for Security Solutions:
With the increasing value of digital assets, the demand for robust security solutions is escalating. In future, the global cybersecurity market is projected to reach USD 300 billion, with a significant portion allocated to digital asset security. In Saudi Arabia, the number of reported cyber incidents related to digital assets has increased by 25% year-on-year, prompting institutions to invest in advanced custody solutions to mitigate risks and protect assets effectively.
Market Challenges
Regulatory Uncertainty:
Despite efforts for regulatory clarity, uncertainty remains a significant challenge in the Saudi digital asset custody market. As of now, only 50% of financial institutions are fully compliant with existing regulations, leading to hesitance in adopting digital asset custody solutions. This uncertainty can deter potential investors, as they seek stable environments for their investments, impacting overall market growth negatively.
Cybersecurity Threats:
The digital asset sector is increasingly vulnerable to cybersecurity threats, with a reported 30% rise in cyberattacks targeting financial institutions in Saudi Arabia. In future, the estimated cost of cybercrime in the region is projected to exceed SAR 2 billion (USD 533 million). This escalating threat landscape poses a significant challenge for digital asset custodians, who must invest heavily in security measures to protect client assets and maintain trust.
Saudi Arabia Digital Asset Custody Market Future Outlook
The future of the Saudi Arabia digital asset custody market appears promising, driven by technological advancements and increasing institutional interest. In future, the integration of artificial intelligence in custody services is expected to enhance operational efficiency and security. Additionally, the rise of decentralized finance (DeFi) is likely to create new avenues for custodians, as they adapt to the evolving landscape. As regulatory frameworks solidify, investor confidence will grow, further propelling market expansion.
Market Opportunities
Expansion of Digital Asset Offerings:
Custodians have the opportunity to expand their service offerings to include a wider range of digital assets, including cryptocurrencies and tokenized assets. This diversification can attract a broader client base, with an estimated 15% increase in demand for varied digital asset services anticipated in future, enhancing revenue streams for custodians.
Partnerships with Financial Institutions:
Collaborations between digital asset custodians and traditional financial institutions can create synergies that enhance service delivery. In future, partnerships are expected to increase by 20%, allowing custodians to leverage existing infrastructures and client bases, thereby accelerating market penetration and fostering innovation in custody solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Saudi Arabia Digital Asset Custody Market is valued at USD 1.2 billion, based on a five-year historical analysis of the Middle East cloud-based digital asset custody platforms market. This growth is primarily driven by the increasing adoption of digital assets among institutional investors, the expansion of tokenized financial instruments, and the rising demand for secure storage solutions. Additional growth drivers include the integration of advanced security technologies such as multi-party computation (MPC) and cold-hot wallet infrastructure, as well as the entry of regulated custodial platforms that align with global best practices.
Key cities such as Riyadh and Jeddah continue to dominate the market due to their status as financial hubs, attracting both local and international investors. The presence of major financial institutions and investment firms in these cities further enhances their dominance, as they seek reliable custody solutions for digital assets. Institutional depth is supported by Vision 2030’s emphasis on capital market development and digital transformation.
In 2023, the Saudi Central Bank (SAMA) issued the “Digital Asset Custody Guidelines, 2023” mandating that all custodians must comply with strict security protocols, including multi-factor authentication, cold storage requirements, and robust risk management practices. The guidelines require custodians to obtain licensing, maintain minimum capital thresholds, and undergo periodic audits to ensure investor protection and the integrity of digital asset transactions within the kingdom.
Saudi Arabia Digital Asset Custody Market Segmentation
By Type:
The market is segmented into various types of custody solutions, including Institutional Custody, Retail Custody, Multi-Signature Custody, Cold Storage Solutions, Hot Wallet Custody, Custody for NFTs & Tokenized Assets, MPC-Based Custody Solutions, and Others. Each of these sub-segments caters to different customer needs and preferences, with varying levels of security and accessibility. Institutional custody solutions are preferred by banks and asset managers for their compliance features and robust risk controls, while retail custody and hot wallet solutions offer greater accessibility for individual investors. Multi-signature and MPC-based custody solutions are increasingly adopted for enhanced security and operational flexibility, particularly for tokenized assets and NFTs.
By End-User:
The end-user segmentation includes Financial Institutions (Banks, Asset Managers), Corporates & Enterprises, High-Net-Worth Individuals (HNWI), Retail Investors, and Government & Public Sector. Each segment has unique requirements for digital asset custody, influencing the types of services offered. Financial institutions prioritize regulatory compliance and advanced security, corporates seek integrated solutions for treasury and investment management, HNWIs demand personalized custody and insurance, while retail investors and the public sector focus on accessibility and transparency.
Saudi Arabia Digital Asset Custody Market Competitive Landscape
The Saudi Arabia Digital Asset Custody Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Digital Asset Custody Company (SDACC), Alinma Investment, SEDCO Capital, Riyad Capital, SNB Capital (formerly NCB Capital), Al Rajhi Capital, Samba Capital, Arab National Bank, Albilad Investment, Aljazira Capital, Emirates NBD, Abu Dhabi Commercial Bank, Qatar National Bank, Gulf Bank, Bank Albilad, Fireblocks, BitGo, Komainu, Zodia Custody, Standard Chartered (Zodia Markets) contribute to innovation, geographic expansion, and service delivery in this space.
Saudi Digital Asset Custody Company (SDACC)
2021
Riyadh, Saudi Arabia
Alinma Investment
2008
Riyadh, Saudi Arabia
SEDCO Capital
1974
Jeddah, Saudi Arabia
Riyad Capital
2008
Riyadh, Saudi Arabia
SNB Capital
2007
Riyadh, Saudi Arabia
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Total Assets Under Custody (USD Millions)
Number of Institutional Clients
Revenue Growth Rate (%)
Market Share (%)
Compliance Certifications (e.g., SAMA, ISO/IEC 27001)
Saudi Arabia Digital Asset Custody Market Industry Analysis
Growth Drivers
Increasing Institutional Adoption:
The Saudi Arabian financial sector is witnessing a surge in institutional adoption of digital assets, with over 30% of financial institutions actively exploring blockchain technology in future. This trend is supported by the Saudi Central Bank's initiatives to integrate digital currencies into the banking system, aiming for a 20% increase in digital asset transactions. Institutional players are expected to manage assets worth approximately SAR 1 billion (USD 267 million) in digital custody solutions, driving market growth significantly.
Regulatory Clarity and Support:
The Saudi government is actively working to establish a clear regulatory framework for digital assets, with the Financial Sector Development Program aiming to finalize regulations in future. This initiative is expected to enhance investor confidence, as evidenced by a 40% increase in inquiries from potential investors regarding digital asset custody services. The establishment of a regulatory body will further facilitate compliance, encouraging more firms to enter the market.
Rising Demand for Security Solutions:
With the increasing value of digital assets, the demand for robust security solutions is escalating. In future, the global cybersecurity market is projected to reach USD 300 billion, with a significant portion allocated to digital asset security. In Saudi Arabia, the number of reported cyber incidents related to digital assets has increased by 25% year-on-year, prompting institutions to invest in advanced custody solutions to mitigate risks and protect assets effectively.
Market Challenges
Regulatory Uncertainty:
Despite efforts for regulatory clarity, uncertainty remains a significant challenge in the Saudi digital asset custody market. As of now, only 50% of financial institutions are fully compliant with existing regulations, leading to hesitance in adopting digital asset custody solutions. This uncertainty can deter potential investors, as they seek stable environments for their investments, impacting overall market growth negatively.
Cybersecurity Threats:
The digital asset sector is increasingly vulnerable to cybersecurity threats, with a reported 30% rise in cyberattacks targeting financial institutions in Saudi Arabia. In future, the estimated cost of cybercrime in the region is projected to exceed SAR 2 billion (USD 533 million). This escalating threat landscape poses a significant challenge for digital asset custodians, who must invest heavily in security measures to protect client assets and maintain trust.
Saudi Arabia Digital Asset Custody Market Future Outlook
The future of the Saudi Arabia digital asset custody market appears promising, driven by technological advancements and increasing institutional interest. In future, the integration of artificial intelligence in custody services is expected to enhance operational efficiency and security. Additionally, the rise of decentralized finance (DeFi) is likely to create new avenues for custodians, as they adapt to the evolving landscape. As regulatory frameworks solidify, investor confidence will grow, further propelling market expansion.
Market Opportunities
Expansion of Digital Asset Offerings:
Custodians have the opportunity to expand their service offerings to include a wider range of digital assets, including cryptocurrencies and tokenized assets. This diversification can attract a broader client base, with an estimated 15% increase in demand for varied digital asset services anticipated in future, enhancing revenue streams for custodians.
Partnerships with Financial Institutions:
Collaborations between digital asset custodians and traditional financial institutions can create synergies that enhance service delivery. In future, partnerships are expected to increase by 20%, allowing custodians to leverage existing infrastructures and client bases, thereby accelerating market penetration and fostering innovation in custody solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
100 Pages
- 1. Saudi Arabia Digital Asset Custody Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. Saudi Arabia Digital Asset Custody Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. Saudi Arabia Digital Asset Custody Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing Institutional Adoption
- 3.1.2. Regulatory Clarity and Support
- 3.1.3. Rising Demand for Security Solutions
- 3.1.4. Technological Advancements in Blockchain
- 3.2. Restraints
- 3.2.1. Regulatory Uncertainty
- 3.2.2. Cybersecurity Threats
- 3.2.3. Limited Awareness Among Investors
- 3.2.4. High Initial Setup Costs
- 3.3. Opportunities
- 3.3.1. Expansion of Digital Asset Offerings
- 3.3.2. Partnerships with Financial Institutions
- 3.3.3. Development of Custody Solutions for NFTs
- 3.3.4. Growth in Retail Investor Participation
- 3.4. Trends
- 3.4.1. Increased Focus on ESG Compliance
- 3.4.2. Emergence of Decentralized Finance (DeFi)
- 3.4.3. Integration of AI in Custody Services
- 3.4.4. Shift Towards Multi-Asset Custody Solutions
- 3.5. Government Regulation
- 3.5.1. Licensing Requirements for Custodians
- 3.5.2. Anti-Money Laundering (AML) Regulations
- 3.5.3. Consumer Protection Laws
- 3.5.4. Taxation Policies on Digital Assets
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. Saudi Arabia Digital Asset Custody Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Institutional Custody
- 4.1.2. Retail Custody
- 4.1.3. Multi-Signature Custody
- 4.1.4. Cold Storage Solutions
- 4.1.5. Hot Wallet Custody
- 4.1.6. Custody for NFTs & Tokenized Assets
- 4.1.7. MPC-Based Custody Solutions
- 4.1.8. Others
- 4.2. By End-User (in Value %)
- 4.2.1. Financial Institutions (Banks, Asset Managers)
- 4.2.2. Corporates & Enterprises
- 4.2.3. High-Net-Worth Individuals (HNWI)
- 4.2.4. Retail Investors
- 4.2.5. Government & Public Sector
- 4.3. By Asset Class (in Value %)
- 4.3.1. Cryptocurrencies (Bitcoin, Ethereum, etc.)
- 4.3.2. Security Tokens
- 4.3.3. Stablecoins
- 4.3.4. Tokenized Real-World Assets
- 4.3.5. Central Bank Digital Currencies (CBDCs)
- 4.3.6. NFTs
- 4.4. By Service Model (in Value %)
- 4.4.1. Full-Service Custody
- 4.4.2. Self-Custody Solutions
- 4.4.3. Hybrid Custody Models
- 4.4.4. Wallet-as-a-Service
- 4.5. By Compliance Level (in Value %)
- 4.5.1. Regulated Custodians
- 4.5.2. Unregulated Custodians
- 4.6. By Geographic Presence (in Value %)
- 4.6.1. Domestic Custodians
- 4.6.2. International Custodians
- 4.7. By Pricing Model (in Value %)
- 4.7.1. Subscription-Based
- 4.7.2. Transaction Fee-Based
- 4.7.3. Tiered Pricing
- 4.7.4. Asset-Based Fees
- 4.7.5. Others
- 5. Saudi Arabia Digital Asset Custody Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Saudi Digital Asset Custody Company (SDACC)
- 5.1.2. Alinma Investment
- 5.1.3. SEDCO Capital
- 5.1.4. Riyad Capital
- 5.1.5. SNB Capital (formerly NCB Capital)
- 5.2. Cross Comparison Parameters
- 5.2.1. Total Assets Under Custody (USD Millions)
- 5.2.2. Number of Institutional Clients
- 5.2.3. Revenue Growth Rate (%)
- 5.2.4. Market Share (%)
- 5.2.5. Compliance Certifications (e.g., SAMA, ISO/IEC 27001)
- 6. Saudi Arabia Digital Asset Custody Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. Saudi Arabia Digital Asset Custody Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. Saudi Arabia Digital Asset Custody Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Asset Class (in Value %)
- 8.4. By Service Model (in Value %)
- 8.5. By Compliance Level (in Value %)
- 8.6. By Geographic Presence (in Value %)
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