Custody Service

Global Custody Service Market to Reach US$53.4 Billion by 2030

The global market for Custody Service estimated at US$39.6 Billion in the year 2024, is expected to reach US$53.4 Billion by 2030, growing at a CAGR of 5.1% over the analysis period 2024-2030. Equity Asset, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$25.7 Billion by the end of the analysis period. Growth in the Fixed Income Asset segment is estimated at 5.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$10.8 Billion While China is Forecast to Grow at 9.3% CAGR

The Custody Service market in the U.S. is estimated at US$10.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$11.3 Billion by the year 2030 trailing a CAGR of 9.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.1% and 4.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Custody Services Market – Key Trends & Drivers Summarized

Why Are Custody Services Becoming Central to Institutional Asset Management?
Custody services have become a foundational pillar in the global financial infrastructure, providing secure safekeeping of financial assets for institutional investors, banks, mutual funds, insurance firms, pension funds, and increasingly, high-net-worth individuals. These services go beyond storage; they include trade settlement, corporate actions processing, income collection, tax support, proxy voting, and reporting. In today’s highly regulated, risk-averse environment, asset managers rely heavily on custody providers to ensure operational efficiency, regulatory compliance, and asset protection.

The growing complexity of investment strategies and the expansion into global and alternative asset classes—including derivatives, private equity, and digital assets—have increased demand for specialized, cross-border custody solutions. With mounting pressure to manage costs, mitigate operational risks, and ensure transparency, institutional clients are partnering with global custodians who offer scalable platforms, integrated reporting tools, and end-to-end asset servicing. This shift is further reinforced by financial market globalization, which requires seamless post-trade infrastructure and multi-jurisdictional compliance expertise.

How Are Technology and Digitalization Transforming Custody Services?
Technology is redefining the operational architecture of custody services. Automated workflows, AI-enabled reconciliation, and real-time settlement systems are being adopted to streamline trade lifecycle management. Cloud-based platforms and advanced data analytics tools are empowering custodians to deliver customized reporting, risk dashboards, and predictive analytics to clients. The integration of APIs and open banking frameworks is allowing clients to access custody data and services in a more modular, on-demand fashion.

One of the most transformative developments is the emergence of digital asset custody. As institutional interest in cryptocurrencies and tokenized assets grows, custodians are developing secure, regulation-compliant digital vaults using multi-signature wallets, cold storage, and blockchain auditing. Legacy players are either building proprietary crypto custody infrastructure or partnering with fintech custodians to offer hybrid solutions. Additionally, distributed ledger technologies (DLTs) are being explored for future custody models, particularly in enabling real-time, atomic settlement and smart contract-enabled asset servicing.

What Are the Key Client Segments and Use Cases for Custody Services?
Institutional investors are the primary clients of custody services, spanning asset managers, sovereign wealth funds, insurance companies, and pension schemes. These clients seek comprehensive custody solutions that include cross-border asset servicing, FX management, and performance reporting. Investment banks and broker-dealers utilize custodians for collateral management, securities lending, and tri-party arrangements, especially under tighter regulatory frameworks like Basel III and EMIR.

The rise of family offices and ultra-high-net-worth individuals (UHNWIs) has also expanded the custody market into bespoke wealth custody services, including estate administration, complex asset structuring, and ESG portfolio tracking. Meanwhile, public funds, endowments, and nonprofits require transparent and compliant custody frameworks to satisfy fiduciary standards. In the digital space, hedge funds and crypto-native asset managers are engaging with custodians that offer secure, insured, and institutionally regulated digital custody solutions for crypto and tokenized investments.

What Factors Are Driving Market Growth in Custody Services Worldwide?
The growth in the custody services market is driven by several factors related to capital market expansion, investor protection, and technological advancement. The steady rise in global assets under management (AUM), especially in emerging markets and alternative asset classes, is increasing the need for custodial infrastructure that can support diverse, globalized portfolios. Regulatory pressures for transparency, segregation of duties, and risk control are reinforcing the demand for Third-party custody services among financial institutions and fiduciaries.

Digital transformation in asset servicing is enabling custodians to deliver more scalable, real-time, and client-centric offerings, improving service competitiveness and operational efficiency. The entrance of digital assets into mainstream finance is driving both traditional and new-age custodians to invest in next-generation custody platforms that meet the security and regulatory requirements of institutional crypto holders. Lastly, the growing complexity of cross-border transactions and investment compliance is positioning custody providers as strategic partners in global fund management, not just as back-office facilitators. These forces collectively underscore the pivotal role of custody services in the evolving architecture of global capital markets.

SCOPE OF STUDY:

The report analyzes the Custody Service market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Equity Type, Fixed Income Type, Alternative Assets Type, Other Types); Service (Core Custody Services, Ancillary Services, Core Depository Services, Other Services)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• Apex Group Ltd.
• Bank of New York Mellon
• Bankers Trust
• BNP Paribas Securities Services
• Brown Brothers Harriman
• Citibank
• CSC Global
• Deutsche Bank
• Euroclear
• HSBC Holdings plc
• Intertrust Group
• JPMorgan Chase & Co.
• Northern Trust Corporation
• Pictet Group
• SIX Group
• Société Générale Securities Services
• SS&C Technologies
• Standard Chartered Bank
• State Street Corporation
• UBS Group AG

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