Bitstamp
Exchange CustodyBitstamp is one of the oldest cryptocurrency exchanges, operating since 2011. European-based with Luxembourg banking license. Acquired by Robinhood in 2024. Known for reliability and institutional focus.
Quick Verdict
With a Custody Score of 7.5/10, Bitstamp is ranked #4 of 10 among exchange custody providers. Its strongest category is Regulatory and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 7.5 | 20% | 1.50 |
| Insurance | 6.5 | 15% | 0.98 |
| Regulatory | 8.5 | 15% | 1.27 |
| Fee Transparency | 8 | 10% | 0.80 |
| Track Record | 8 | 15% | 1.20 |
| Withdrawal Flexibility | 8 | 10% | 0.80 |
| Reporting & Audit | 7.5 | 10% | 0.75 |
| Counterparty Diversification | 3 | 5% | 0.15 |
| Total | 100% | 7.5 |
Key Features
- ✓13+ year track record
- ✓Luxembourg banking license
- ✓BitGo custody partnership
- ✓Low trading fees
- ✓Institutional API
- ✓SEPA/SWIFT support
Fee Breakdown
| Setup Fee | Free |
| Annual Custody Fee | None |
| Transaction Fee | 0.0-0.4% tiered |
| Withdrawal Fee | Network fees |
| Notes | Competitive tiered fee structure. One of Europe's most established exchanges. |
Security Details
Key Management
BitGo custody partnership
Cold Storage
95%+
SOC Compliance
SOC 2 Type 2
Penetration Testing
Yes
Incident History: 2015 hot wallet breach (19,000 BTC). Fully repaid users.
Insurance Coverage
Coverage
BitGo custody insurance for cold storage
Carrier
Via BitGo
Details
Cold storage through BitGo with insurance coverage.
Regulatory Status
Licenses
- Luxembourg payment institution license
- FCA registered (UK)
- Multiple EU licenses
Luxembourg-licensed. One of the most established exchanges globally.
Pros & Cons
Pros
- 13+ year track record — among oldest exchanges
- Luxembourg banking license
- Competitive fee structure
- Strong European presence
- BitGo custody infrastructure
Cons
- 2015 security breach (users made whole)
- Acquired by Robinhood (ownership change)
- Smaller than Coinbase/Kraken
- Single custodian risk
- Limited altcoin selection