The crypto industry is poised for a significant shift toward self-custody solutions in 2025, according to OKX President Hong Fang. In a recent interview, Fang highlighted the growing tension between institutional adoption and centralized custody risks, predicting a surge in demand for decentralized asset management.
The Rise of Self-Custody Solutions
As institutional interest in cryptocurrency grows through ETFs and other regulated products, Fang anticipates parallel concerns about custody concentration risks. She observes:
👉 Why self-custody wallets are gaining popularity
- Native crypto users increasingly prefer controlling their own assets
- OKX's self-custody wallets now hold $50B compared to $30.8B on its centralized exchange
- DEX volumes have grown 20x year-over-year
"The crypto-native audience wants reliability from CEXs while using DEXs for innovation," Fang noted, emphasizing that both platforms serve complementary purposes in the ecosystem.
Educational Campaigns and Product Innovation
Fang expects industry-wide initiatives to:
- Educate users on self-custody importance
- Simplify self-custody interfaces
- Develop risk-mitigation tools
"More products will emerge to make self-custody accessible to mainstream users while addressing associated risks," she predicted during her upcoming Consensus Hong Kong appearance.
Bitcoin Strategic Reserve: Reality or Rhetoric?
Addressing proposals for national bitcoin reserves:
- Only 30% probability for U.S. federal adoption (per Polymarket data)
- More likely in smaller nations or states
- Over-centralization remains crypto's greatest systemic risk
"Very unexpected events could quickly alter market trajectories," Fang cautioned, while reaffirming self-custody as the solution to over-centralization.
FAQs About Self-Custody Adoption
Q: Why is 2025 considered the year of self-custody?
A: Growing institutional adoption is simultaneously raising awareness about custody risks, driving demand for decentralized alternatives.
Q: How does OKX's self-custody volume compare to its CEX?
A: Self-custody wallets hold $50B versus $30.8B on the centralized platform, demonstrating strong user preference for asset control.
Q: Are DEXs replacing centralized exchanges?
A: No—they serve different purposes. CEXs provide reliability while DEXs enable innovation.
Q: What's the biggest risk to current crypto growth?
A: Over-centralization of assets and protocols remains the primary systemic risk.
👉 Explore secure self-custody solutions
The market's rapid adoption of self-custody solutions suggests a fundamental shift in how users interact with digital assets—one that prioritizes security and personal control without sacrificing accessibility or innovation.