Protocol Theory and Tangem research featured in The Block as self-custody shifts toward active use

The feature draws on Tangem’s continued growth and the rising relevance of self-custody as users seek more control over how they manage digital assets.

For Protocol Theory, the coverage reflects the central argument of our recent report with Tangem, From Storage to Participation: The Rise of Active Self-Custody: self-custody is evolving beyond its traditional role as a storage mechanism and becoming a more active layer of crypto participation.

Historically, self-custody has often been associated with long-term storage, security, and asset protection. Our research shows this framing no longer fully reflects how self-custody is used in practice.

Drawing on data from more than 3,100 U.S. crypto users across multiple studies, the report identifies a persistent gap between how self-custody is valued and how it is adopted. Around two-thirds of crypto users consider self-custody important, yet only 15% use cold wallets to hold and manage assets.

This gap is shaped by perception. Many users continue to see cold wallets as tools for large balances, long-term holding, or passive storage. Yet the behavior of existing cold wallet users points to a broader role. Cold wallet users are actively trading, managing assets, using stablecoins, sending crypto, and connecting to applications. Only 9% of cold wallet users are passive holders, compared with 25% of centralized exchange users.

The report introduces this shift as Active Self-Custody: a mode of participation in which users engage across storing, growing, and spending functions while maintaining direct control over their assets.

This matters because the future of self-custody will be shaped by more than security alone. Adoption depends on whether users understand what modern self-custody tools enable, whether they experience them as usable, and whether they feel confident taking direct responsibility for their assets.

As the ecosystem matures, self-custody is becoming less about where assets are held and more about how value is controlled, accessed, deployed, and moved.

That is why we describe Active Self-Custody as the control layer of crypto.

Access the report & feature here

• Read The Block feature here.
• Read the full report here.

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