Custody Service Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Custody Service Market was valued at USD 2024 in 40.86 Billion, and is expected to reach USD 65.24 Billion by 2030, rising at a CAGR of 6.02%. Custody services encompass the safekeeping, settlement, and reporting of clients’ cash and marketable securities, and may include securities lending to qualified borrowers for added income. The market valuation reflects both core services and related offerings incorporated by providers.

As businesses and institutions increasingly seek operational transparency and risk mitigation, the demand for efficient and secure custody solutions continues to grow. The industry is undergoing transformation through automation and standardization, which are enhancing operational efficiency, service quality, and responsiveness to future client needs. With innovations such as automated reporting and open platform data models, custodians are evolving from asset-focused to data-centric service providers, which is anticipated to further stimulate market expansion in the years ahead.

Key Market Drivers

Rise in Global Wealth and Asset Accumulation

The ongoing growth in global wealth and asset ownership is a major factor driving the custody services market. As economies expand and financial literacy improves, both individuals and institutional investors are amassing diversified portfolios that require secure and compliant custody solutions. The rise in affluence, especially within emerging markets, and the expansion of the global middle class have heightened the demand for trustworthy custodial services. High-net-worth individuals, family offices, and large institutions are increasingly relying on custodians to safeguard an array of traditional and alternative assets. Furthermore, the growing prominence of digital assets has created a broader range of financial instruments, reinforcing the need for robust and adaptable custody infrastructure capable of supporting both conventional and emerging asset classes.

Key Market Challenges

Rapid Technological Advancements and Cybersecurity Risks

The swift pace of technological change poses a significant challenge for the custody services market, especially in the area of cybersecurity. While digital transformation enhances efficiency and service capabilities, it simultaneously introduces risks such as cyberattacks, data breaches, and system vulnerabilities. Custodians must maintain highly secure digital infrastructure to ensure the safe storage and handling of sensitive financial data and transactions. As the industry adopts innovations like blockchain and distributed ledger technologies, additional complexities arise related to system integration, interoperability, and regulatory compliance. To navigate these risks, custodians are required to invest heavily in advanced security measures, encryption systems, and personnel training. Maintaining the balance between technological innovation and operational security is critical for long-term trust and performance in the custody sector.

Key Market Trends

Digital Transformation and Blockchain Integration: Revolutionizing Custody Services

Digital transformation, spearheaded by the adoption of blockchain technology, is reshaping the custody service market. Custodians are leveraging cutting-edge tools to enhance asset security, streamline operations, and improve transparency. Blockchain enables secure and tamper-proof asset recording, verification, and transfer, significantly reducing the risk of fraud and operational errors. Its application is expanding across settlement, recordkeeping, and the safekeeping of digital and tokenized assets. Traditional custodians are adapting infrastructure to accommodate cryptocurrencies and security tokens. Blockchain’s security features support stronger asset integrity and traceability.

A notable development occurred in April 2024 when Landesbank Baden-Württemberg (LBBW) in Germany announced its entry into crypto custody services through a collaboration with Austrian exchange Bitpanda. The partnership will deliver digital asset trading and custody solutions, beginning with Bitcoin and Ethereum, to meet growing demand from corporate clients. This reflects a broader industry shift toward integrating blockchain in custody operations to stay competitive in a digitally evolving financial ecosystem.

Key Market Players

• Axis Bank Ltd.
• DBS Bank Ltd.
• Deutsche Bank A.G.
• Edelweiss Custodial Services Ltd.
• HDFC Bank Ltd.
• Hong Kong & Shanghai Banking Corporation Ltd.
• ICICI Bank Ltd.
• Infrastructure Leasing & Financial Services Ltd.
• Kotak Mahindra Bank
• Orbis Financial Corporation Ltd.

Report Scope:

In this report, the Global Custody Service Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Custody Service Market, By Type:

• Equity
• Fixed Income
• Alternative Assets
• Others

Custody Service Market, By Service:

• Core Custody Services
• Ancillary Services
• Core Depository Services
• Others

Custody Service Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia-Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey
• Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Custody Service Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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