The year 2024 has been pivotal for the crypto world, bringing transformative changes throughout the industry. For Cobo, it stands as a defining milestone in our journey, underscoring our commitment to innovation and growth.

A Year of Market Shifts and Company Milestones

This year, we witnessed the approval of Spot Bitcoin ETFs, a moment that has divided the narrative of crypto history into two distinct eras: pre-ETF and post-ETF. Bitcoin’s price reached unprecedented levels, surpassing $70,000 and triggering a market-wide surge. Meanwhile, Ethereum’s mainnet upgrades and the maturation of Layer 2 solutions significantly enhanced transaction speed and cost efficiency for users.

Importantly, the advancement of Bitcoin’s Layer 2 networks unlocked new growth potential for Bitcoin DeFi (BTCFi) investment products, and the rapid adoption of DeFi and other applications meant that crypto is now more accessible than ever before.

This year also marks Cobo’s seventh anniversary.

Since our inception in 2017, we’ve pursued a mission to empower users to take control of their digital assets. Our journey began with one of the world’s first crypto wallets supporting Proof of Stake (PoS). Today, Cobo serves over 500 institutional clients worldwide, safeguarding billions of dollars in assets and securing transactions totaling over $200 billion. In 2024 alone, we achieved a threefold increase in assets under custody and introduced Cobo Portal—the industry's only all-in-one digital asset custody and wallet platform.  

Opportunities and Challenges in a Changing Market

Opportunities never come without challenges.

The approval of Bitcoin ETFs not only drove asset prices higher but also catalyzed the entry of financial giants like BlackRock into the market. These traditional institutions view Bitcoin as a hedge against inflation and a key component of diversified portfolios.

However, the influx of institutional players has also raised the bar for compliance. As the industry moves towards more regulated frameworks, meeting stringent Know Your Customer (KYC) and Travel Rule requirements has become a critical entry barrier. Custodians are now expected to meet far higher standards of compliance and operational integrity.

Security challenges, meanwhile, remain ever-present. In 2023 alone, the industry suffered losses exceeding $2 billion due to cyberattacks, and hackers inflicted $1.2 billion in damages in the first half of 2024. As attack vectors become more sophisticated, the need for dynamic, evolving security measures has never been more pressing. Security in the crypto space is not a one-time fix—it’s a continuous battle, requiring constant adaptation to new threats.

From Cobo Custody to Cobo Portal: A Strategic Upgrade

In response to these evolving challenges, Cobo has undergone a strategic transformation—from Cobo Custody to Cobo Portal—aligning ourselves with market trends while staying true to our mission.

Cobo Portal introduces a groundbreaking model, offering a standardized abstraction of four major wallet types: Custodial Wallets, MPC Wallets, Smart Contract Wallets, and Exchange Wallets. By providing a unified interface and a standardized set of API, Cobo Portal empowers institutional users to seamlessly switch between wallet types based on their operational needs, without needing to understand the technical complexities of private key management. This innovation simplifies digital asset management while laying the groundwork for automated and programmatic operations.

Given the heightened focus on compliance and security, Cobo Portal integrates a dual-layer system: technological abstraction + smart risk controls. This framework offers comprehensive, institutional-grade protection for managing digital assets. Additionally, we are actively engaging with regulators in Hong Kong and Singapore to secure licenses, further strengthening our compliance infrastructure. Our Cobo Portal Apps now offer a range of compliance tools, including tax reporting solutions, to support clients in navigating regulatory complexities.

Building an Open Digital Asset Ecosystem

Cobo Portal is more than just a suite of tools—it’s a comprehensive digital asset service platform. It spans the core pillars of the crypto-native economy: issuance, trading, and circulation, providing developers a robust infrastructure that extends beyond standard APIs. Through Cobo Portal Apps, developers can access hundreds of custodial clients, tap into billions of dollars in digital assets, and design flexible pricing models to commercialize their solutions.

Throughout these developments, security and risk controls remain at the core of everything we do. This is more than a technical priority—it’s a reflection of our mission to make digital assets accessible and secure for everyone.

The Next Chapter: Preparing for the AI-Crypto Convergence

The crypto industry moves at lightning speed—earning the phrase “a day in crypto equals a year in traditional industries.” Surviving and thriving in such a volatile environment for seven years is no small feat. Along the way, we’ve confronted numerous security threats and adapted through multiple business transformations. We owe our success to the dedication of our employees and the trust of our clients and partners.

Looking ahead, we are preparing for the convergence of AI and digital assets. Cobo’s development of Cobo Portal and Wallet-as-a-Service (WaaS) solutions over the past year lays the foundation for this future. We foresee that AI agents will gradually become key participants in the Web3 ecosystem, and standardized programmatic interfaces for crypto wallets will become essential. This vision is why we are committed to abstracting and unifying protocols across different wallets and blockchains.

Given the uncertainties of AI-driven decision-making, robust risk controls will be crucial for seamless AI-blockchain interactions. Cobo’s expertise in security and compliance uniquely positions us to build the necessary infrastructure for this new era. Through our standardized APIs and smart risk controls, we are creating the foundations for managing digital assets in an AI-driven future.

Continuing the Journey with Confidence

Seven years on, our mission remains unchanged. With unwavering belief in the potential of digital assets, deep industry insight, and a steadfast commitment to our clients, Cobo is ready to embrace the next chapter. Together, we will continue exploring the endless possibilities of the crypto world and craft an even more exciting future.