Institutional Custody Services Market Report 2025

The institutional custody services market size has grown strongly in recent years. It will grow from $28.1 billion in 2024 to $30.33 billion in 2025 at a compound annual growth rate (CAGR) of 8%. The growth observed during the historic period can be attributed to the expansion of institutional investment assets, increased regulatory compliance and reporting requirements, a rise in cross-border investment activities, growing demand for risk mitigation and asset protection, and the increasing complexity of financial transactions.

The institutional custody services market size is expected to see strong growth in the next few years. It will grow to $40.67 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The anticipated growth in the forecast period is expected to stem from the rise of digital asset custody, growing demand from sovereign wealth funds, wider adoption of cloud-based custody service platforms, increased need for real-time reporting and analytics, and heightened institutional investment activities. Key trends in the forecast period include the integration of blockchain technology, artificial intelligence and advanced data analytics, the use of AI-driven tools, and the adoption of automation technologies.

The rising influx of foreign investments is expected to drive the growth of the institutional custody services market moving forward. Foreign investment involves the transfer of capital from one country to another by individuals, companies, or governments investing in assets such as businesses, real estate, or financial instruments to obtain ownership, control, or financial returns. This increase is fueled by growing globalization, encouraging investors to seek diversified growth opportunities and higher returns across international borders. Rising foreign investments support institutional custody services by increasing the demand for secure and compliant asset management, especially in cross-border transactions. They also promote the development of advanced custody solutions, enhancing trust and transparency for global investors. For example, in February 2025, the International Monetary Fund, a US-based financial institution, reported that global foreign direct investment reached $41 trillion in 2023, reflecting a 4.4% increase from 2022. Consequently, the growth in foreign investments is propelling the institutional custody services market.

Leading companies in the institutional custody services market are pursuing strategic partnerships to improve asset security, generate passive income, and address rising institutional demand for blockchain-based financial services. Strategic partnerships are formal collaborations between organizations that pool resources, expertise, technology, or market access to achieve common goals. For instance, in April 2025, Paribu Custody, a Turkey-based digital asset custody provider, partnered with Figment, a Canada-based computer security firm, to launch a secure and advanced staking service for institutional clients. This partnership merges Paribu’s strong security infrastructure with Figment’s leading staking technology, allowing institutions to participate in staking across major proof-of-stake networks such as Ethereum, Solana, and Cardano while retaining custody of their assets. This initiative responds to increasing institutional demand for environmentally friendly, reward-generating blockchain participation, offering a seamless, compliant, and trustworthy gateway.

In February 2023, Galaxy Digital Holdings Ltd., a US-based financial company, acquired all assets of GK8 from Celsius Network LLC for about $44 million. Through this acquisition, Galaxy aimed to strengthen its institutional-grade digital asset infrastructure by integrating GK8’s secure custody technology, including its proprietary cold vault and multi-party computation (MPC) capabilities. Celsius Network LLC is a crypto lending firm providing custody-like services for digital assets primarily via its GK8 platform.

Major players in the institutional custody services market are The Bank of China, Citigroup Inc., HSBC Holdings plc, Société Générale SA, Goldman Sachs Group Inc., UBS Group AG, The Bank of Montreal, Barclays PLC, U.S. Bank National Association, The PNC Financial Services Group Inc., ICICI Bank Limited, Mizuho Financial Group Inc, The Bank of New York Mellon Corporation, Standard Chartered Bank, BlackRock Inc., Axis Bank Limited, Fifth Third Bancorp., First-Citizens Bank & Trust Company, Regions Financial Corporation, Brown Brothers Harriman & Co., Wilmington Trust NA, Clearstream Banking S.A, BNP Paribas Securities Services S.C.A, Anchorage Digital Bank National Association, Commerce Trust Company, Millennium Trust Company LLC.

North America was the largest region in the institutional custody services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in institutional custody services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the institutional custody services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Institutional custody services are specialized financial offerings by banks or custodians aimed at safeguarding and managing the assets of institutional clients such as pension funds, insurance companies, mutual funds, and endowments. These services guarantee the secure, accurate, and efficient handling of large-scale financial assets while ensuring regulatory compliance.

The primary categories of institutional custody services include core custody services and ancillary services. Core custody services encompass the fundamental functions custodians provide across all asset types, such as secure custody, trade settlement, recordkeeping, account administration, income collection, corporate actions processing, and regulatory reporting. These services apply to various asset classes, including equities, fixed income, real estate, alternative investments, and others, serving entities such as foundations, government agencies, and enterprises.

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

The institutional custody services market includes revenues earned by entities by providing services such as safekeeping of assets, trade settlement, income collection, corporate actions processing, and regulatory reporting for institutional clients. 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.

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.

This product will be delivered within 1-3 business days.