Anchorage, Finoa, Copper, Gemini, Coinbase Custody, Fidelity...the list goes on.

Circle and Paxos are big players in custody, too.

Just ask P. T. Barnum.

I cashed out back in 2021 but back before that I used to hold some crypto assets on Nexo. I don't have any inside knowledge of their operations, but they always seemed to take compliance and overcollateralisation more seriously than others, and they have certainly weathered the storms.

I'm purely in tradfi investments now because, well, look at crypto..

Honestly I would expect the market to be won by an exchange that plays by the rules. The dodgy ones will outcompete in the short term, but they are prone to instant and complete destruction in a way that the well run ones aren't. Additionally, it's clear as day that regulation is coming, so those exchanges who are already compliant will have an advantage.

Nexo settles federal and state regulatory lawsuits for $45M (https://www.bloomberg.com/news/articles/2023-01-19/crypto-le...)

Nexo pulls out of US market (https://financefeeds.com/nexo-cease-its-business-operations-...)

So yeah...

Hm, none of this is about fractional reserve, right? So the OP's point stands?

I was expecting Coinbase to come out ahead here, but they're getting stomped on by the SEC and they're managing to lose hundreds of millions a quarter. Gemini has also been charged due to their involvement with the Genesis staking ponzi. Who's left?

BitGo seems to have done fine after all these years.