Custody Service Market Report 2025

The custody service market size has grown strongly in recent years. It will grow from $45.19 billion in 2024 to $48.92 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to globalization of financial markets, rise of institutional investors, regulatory compliance and risk management, increasing complexity of financial instruments, focus on investor protection.

The custody service market size is expected to see strong growth in the next few years. It will grow to $69.38 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to alternative investments and diverse asset classes, global regulatory changes and compliance, evolving risk management practices, integration of environmental, social, and governance (ESG) factors, shifts in investor preferences and industry trends. Major trends in the forecast period include tokenization of traditional assets, cross-border custody solutions, insurance coverage expansion, integration with defi ecosystem, scalability and automation.

Automation and standardization play pivotal roles in propelling the growth of the custody service market. The custody services industry is actively leveraging technology to enhance efficiency, with a focus on automating and standardizing core custody services and operations. This strategic approach results in heightened visibility, increased productivity through operational efficiency, cost reductions for customers, improved service quality, and the ability for custodians to respond promptly to future needs. The forecast period suggests a shift from the asset-centric model towards a more data-centric, open platform method. This transition enables custodians to access a diverse range of available services. An illustrative example includes the implementation of automated reporting systems that provide daily reports encompassing exceptions, securities available for loan, securities on loan, cash collateral valuation, daily mark-to-market information, and margin calls. Thus, the incorporation of automation and standardization is poised to be a significant driver for the growth of the custody service market.

The increasing demand for digital assets is expected to drive the growth of the custody services market in the future. Digital assets are virtual or electronic resources that hold economic value and can be owned or traded within digital environments. The demand for these assets is fueled by the rising adoption of cryptocurrencies, heightened interest in decentralized finance (DeFi), and the pursuit of alternative investment opportunities among both retail and institutional investors. Custody services for digital assets provide secure storage and management solutions for cryptocurrencies and other blockchain-based assets, ensuring the safety of private keys, facilitating transactions, and maintaining compliance with regulatory requirements to protect investors and build trust in the expanding digital asset market. For instance, in February 2023, the ETC Group, a UK-based financial services company, reported that sales of non-fungible tokens (NFTs) on major blockchains approached nearly $1 billion in January 2023, reflecting an average increase of 33.83% across the top 12 chains. Consequently, the growing demand for digital assets, particularly in the metaverse, is driving the growth of the custody services market.

The emergence of digital asset custody platforms is gaining traction in the custody services market. Companies in the global custody service market are increasingly directing their efforts towards digital asset custody, emphasizing enhanced security and operational efficiency. A case in point is the launch of BNY Mellon's Digital Asset Custody platform in the U.S. in 2022. This platform enables clients to securely hold and transfer bitcoin and ether, bridging the gap between digital and traditional asset custody. Major companies in the custody service market are innovating by developing advanced digital asset custody platforms to cater to larger customer bases, drive sales, and increase revenue. These platforms provide secure storage of cryptographic keys needed to verify ownership and facilitate asset transfers, utilizing advanced security technologies such as multi-party computation. For instance, in October 2022, BNY Mellon launched its New Digital Asset Custody Platform, reflecting the company's commitment to meeting customer demand for a reliable source for both traditional and digital asset servicing. This platform marks BNY Mellon's foray into the evolving digital asset industry, embracing cutting-edge technology and collaborating with fintech partners.

In October 2024, Apex Group Ltd, a Bermuda-based financial services provider, acquired the custody and investment accounting business of Digital Trustees Executors Ltd for an undisclosed amount. This acquisition aims to expand Apex Group's investment operations in New Zealand, reinforcing its position as a leading provider of administration and custody services in the region. It also seeks to enhance service offerings for clients by providing a comprehensive solution that includes access to a wide range of services such as capital raising, distribution, and innovative ESG and sustainability services. Trustees Executors Ltd. is a New Zealand-based company specializing in custody and investment accounting services.

Major companies operating in the custody service market include JPMorgan Chase & Co., HSBC Holdings plc, Citigroup Inc., Wells Fargo & Company, BNP Paribas, UBS AG, State Bank of India, Groupe Caisse d'Épargne, Deutsche Bank AG, HDFC Bank Ltd., ICICI Bank Ltd., The Bank of New York Mellon Corporation, DBS Bank Ltd., Commerzbank AG, State Street Bank and Trust Company, Northern Trust Corporation, Hang Seng Bank Limited, Kotak Mahindra Bank Limited, Standard Chartered plc, Yes Bank Ltd., Societe Generale Securities Services GmbH, Stock Holding Corporation of India Ltd., Julius Baer Group AG, Brown Shipley & Co. Limited, RBC Investor & Treasury Services, Edelweiss Custodial Services Ltd., Orbis Financial Corporation Ltd., Axis Bank Ltd., Brown Brothers Harriman & Co.

North America was the largest region in the custody service market in 2024. Western Europe was the second largest market in the custody service market report. The regions covered in the custody service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the custody service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The custody service market consists of revenues earned by entities by providing services such as settlement, safekeeping, and reporting of customers' marketable securities and cash. Securities lending can allow a customer to make additional income on custody assets by loaning securities to approved borrowers on a short-term basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Custody services generally encompass the settlement, safekeeping, and reporting of marketable securities and cash that customers hold. Customers can generate additional income on assets held in custody by lending securities to approved borrowers for short-term periods.

The primary services provided by custody services include core custody services, ancillary services, core depository services, and various administrative services. Core custody service providers play a role in settling trades, investing cash balances upon request, collecting income, executing corporate activities, pricing securities positions, and aiding in record-keeping and reporting. These services are available for equity, fixed income, alternative assets, and other asset types.

The custody service market research report is one of a series of new reports that provides custody service market statistics, including global market size, regional shares, competitors with custody service market share, detailed custody service market segments, market trends and opportunities, and any further data you may need to thrive in the custody service industry. This custody service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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