For much of crypto’s history, hardware wallets have served a singular purpose: safeguarding digital assets offline. But new research suggests that role is changing rapidly.
A report released today by Swiss hardware wallet maker Tangem, based on an independent study by consumer research firm Protocol Theory, argues that self-custody is shifting from passive storage toward becoming the primary interface for participating in the onchain economy.
Drawing on surveys of 3,172 U.S. crypto users, the report introduces the concept of Active Self-Custody, a model in which users rely on hardware wallets not only to secure assets but also to trade, spend, manage stablecoins, access decentralized finance, and interact with Web3 applications while retaining control of their private keys.
The findings arrive as the crypto industry increasingly pivots from speculation toward broader onchain utility, with wallets emerging as the access point to an expanding ecosystem of financial applications.
Self-custody Users are among crypto’s most Active Participants
One of the report’s strongest findings challenges one of the biggest assumptions within crypto that hardware wallets are primarily designed for long-term holders.
According to the research, hardware wallet users are engaging with a broad range of onchain activities beyond simple storage. Among respondents who use hardware wallets, 77% said they buy, sell, or hold crypto directly from their wallets, while 46% actively manage stablecoin positions. Another 43% reported managing assets across multiple wallets and blockchains, 41% regularly make crypto payments, and 30% connect directly to Web3 applications through their wallets. Together, the figures suggest that hardware wallets are increasingly being used as everyday tools for participating in the digital asset economy rather than solely as long-term storage devices.
The data suggests that self-custody is no longer replacing active investing, it is increasingly enabling it.
“For years, the industry treated self-custody as the place where assets were moved once users were done using them,” said Darya Karpukova, Chief Commercial Officer at Tangem. “Today’s wallet is becoming the interface where users can securely manage, deploy and grow their assets without ever giving up ownership.”
Crypto believes in Self-Custody, but adoption tells a different story
Despite growing confidence in the importance of owning private keys, adoption of hardware wallets remains surprisingly limited.
The report found that 66% of crypto users consider self-custody important, yet only 15% currently use a hardware wallet.
The gap, according to the research, has less to do with technology than with perception.The findings suggest that while demand for self-custody exists, many users still view hardware wallets through an outdated lens.
Wallets are becoming the Gateway to Onchain Participation
The findings come as wallet providers race to transform their products into full fledged crypto platforms.
Rather than acting as standalone storage devices, wallets increasingly integrate token swaps, payments, staking, DeFi access, cross-chain functionality, and Web3 connectivity bringing more onchain activity into a single user-controlled interface.
Tangem says the trend is reflected in its own growth. The company reported $61.3 million in revenue in 2025, representing 102% year-over-year growth, alongside a 50% increase in monthly active users, which it attributes to growing engagement with in-app functionality.
Taken together, the report suggests the industry’s next phase may not be defined by convincing users to abandon centralized platforms altogether, but by making self-custody the control layer through which they securely access an increasingly onchain financial ecosystem.
As crypto matures beyond simple asset ownership, the hardware wallet may be evolving from a digital vault into the user’s primary operating system for Web3.
