Custody Services Market Size, Share & Industry Analysis, By Custodians (Bank and Non-bank), By Service Type (Core Custody & Settlement Services, Asset Servicing & Corporate Actions, Reporting, Compliance & Collateral Management, Fund Administration & Accounting, and Others), By Asset Type (Equities, Fixed Income, Funds, Alternative Assets, and Others), By Client Type (Institutional Investors, Corporates, High Net Worth Individuals, and Others), and Regional Forecast, 2026 – 2034

The global custody services market size was valued at USD 41.12 billion in 2025 and is projected to grow from USD 43.68 billion in 2026 to USD 85.17 billion by 2034, exhibiting a CAGR of 8.7% during the forecast period.North America dominated the custody services market with a market share of 38.08% in 2025.

Custody services refer to the financial services offered by banks, and other financial institutes for the safekeeping and management of financial assets. It includes services related to safekeeping, transaction settlements, reconciliations, corporate actions, payments, taxes, funds management, and reporting. Custody services provide an effective mechanism for the efficient operation of the finance market through their ability to facilitate safe and efficient international investments and asset management. Increasing Assets Under Management (AUM) is one of the factors that drive the custody business. The larger the portfolio owned by institutions, the greater the need for custodians to provide services.

The market is dominated by global custody banks and securities service providers. BNY, State Street Corporation, JPMorgan Chase & Co, and Citigroup emerged as the prominent companies in the global market and are expected to stay robust due to their wide custody networks, institutional client base, global reach, and further investment in digital asset servicing, data analytics, and post-trade automation.

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Custody Services Market KEY TAKEAWAYS

Global Market Size & Forecast

• 2025 Market Size: USD 41.12 billion
• 2026 Market Size: USD 43.68 billion
• 2034 Forecast Market Size: USD 85.17 billion
• CAGR: 8.7% from 2026–2034

Market Share

• North America dominated the market with a 38.08% share in 2025.
• Equities led the asset type segment with a 34.7% share in 2025.
• Core custody & settlement services dominated the service type segment with a 37.9% share in 2025.

Key Regional Highlights

Asia Pacific

Asia Pacific is expected to reach USD 10.46 billion in 2026, supported by growing institutional savings, expanding capital markets, and increasing investment across equity and fixed-income assets.

North America

North America held the leading position with USD 15.66 billion in 2025, supported by strong institutional investment activity, substantial retirement assets, and increasing post-trade automation.

Europe

Europe is projected to grow at a CAGR of 8.8% during the forecast period and reach USD 13.66 billion in 2026, supported by regulated fund structures and the cross-border nature of investment activities.

U.S.

The U.S. market is supported by a large presence of asset management firms, ETF sponsors, mutual funds, pension funds, insurers, and alternative investment managers requiring comprehensive custody and post-trade services.

Japan

Japan’s market is estimated at around USD 2.80 billion in 2026, accounting for roughly 6.40% of global sales.

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CUSTODY SERVICES MARKET TRENDS

Digitalization of Custody and Asset Servicing Operations is Reshaping Market Growth

The custodial services providers are now migrating from the conventional approach of back-office custody to digital asset servicing through automated and real-time solutions. These institutions are investing in automated reporting, real-time settlement and reconciliation services, automated corporate action process, artificial intelligence-based exception handling, and dashboard integration among others to improve transparency and minimize manual work.

These changes are being prompted by the complex nature of investment portfolios, increasing investment across borders, shortened settlement processes, and clients' demands for more timely portfolio information, efficient transactions, compliance, and reporting. The change has thus resulted in traditional custodial firms moving beyond the simple practice of keeping assets to provide technology-enabled asset servicing, data analytics, and operational outsourcing among others.  Crypto custody and digital asset custody solutions have become popular with custodians who want to provide a solution that can help fulfill the growing need for institutions to ensure the safety and security of their cryptocurrencies and other blockchain-related assets.

• For instance, in October 2025, Citi plans to launch digital asset custody services in 2026, positioning its platform to bridge traditional securities and digital assets within a single institutional custody ecosystem.
• For instance, in September 2025, Citi Investor Services launched its Single Event Processing technology to unify its global and direct custody infrastructure for real-time asset servicing.
• For instance, in September 2024, Standard Chartered launched digital asset custody service in the UAE.

MARKET DYNAMICS

MARKET DRIVERS

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Increase in Global Investment Assets Is Driving Market Growth

Custody services market growth is being spurred by the steady increase in the value of global investment assets managed by various investors including asset managers, pension funds, insurers, sovereign wealth funds, mutual funds, ETFs, hedge funds, and corporates. The increase in the value of the managed investment assets means that there will be an increase in the number of securities that have been purchased from equities, fixed income, funds, ETFs, alternatives, private assets, and cash instruments. This implies that the custodian will be required to provide safekeeping of the securities, record keeping, trade execution, reconciliation of transactions, payment of income earned, tax assistance, management of corporate actions, and compliance with regulatory requirements. Growth in the value of global investment assets will thus mean increased workload for custodians. The growth in the industry is becoming increasingly complicated owing to this the portfolio being managed by investors now extends beyond their domestic markets or equity/bond markets. The portfolio is increasingly international and includes multiple currencies, multiple fund vehicles, among others.

MARKET RESTRAINTS

Regulatory and Compliance Complexity is Limiting Market Expansion Across SMEs

The industry faces challenges due to the regulation-intensive nature of asset custody and post-trade activities. Custodian firms are obliged to adhere to regulations pertaining to customer asset segregation, anti-money laundering/ know-your-customer verification, tax processing, reporting on transactions, efficient settlements, maintaining records, safeguarding data, etc. Since the portfolio holdings of institutions can be distributed geographically and across asset types, custodians will always have to adapt themselves to various regulatory regimes, market practices, reporting standards, and taxation laws. It makes custody operations costly and complicated as it results in hiring effective compliance experts, legal advisors, automate report filing, investing in cybersecurity systems, and possess knowledge about the local market.

MARKET OPPORTUNITIES  

Emergence of AI-Enabled Intelligent Custody Services Is Creating Significant Market Opportunities

The increasing adoption of AI, machine learning, automation, and data infrastructure through the IoT provides ample scope for custody service providers to evolve from mere settlement safekeeping and reporting to being able to provide intelligence-led predictive solutions for their asset servicing business. IoT technologies play an important role in custody services when such services are required in respect of tangible assets, tokenized assets, commodities, collateralized assets, trade finance instruments, or securities linked with the supply chain.

Custody service providers could use AI technologies to automate reconciliations, identify settlement discrepancies, spot any anomalies within transactions, increase fraud monitoring capabilities, improve their corporate action services, and provide predictive insights into liquidity, collateral management, and portfolio risks.

• In 2025, BNY Mellon extended its Digital Asset Platform to include Digital Asset Data Insights that were meant to provide secure and scalable delivery of data on-chain and off-chain through blockchain networks. This has further increased the scope for providing data intelligence, tokenized asset services, and digital asset servicing infrastructure by custody service providers

MARKET CHALLENGES

Shorter Settlement Timelines Is Challenging Market Growth

The shift toward shorter settlement cycles poses an operational issue for custodian services since there will be limited time to conduct post trade processing. Custodians will need to undertake processes such as trade matching, trade allocation, settlement instructions, fund transfer, currency conversion, reconciliation, and resolution of exceptions in a very tight schedule. Delay in any of the above procedures may lead to failure in trade, late penalties, liquidity issues, and wrong client reports. This issue becomes even more difficult in case of cross-border trade where trades may have to be conducted across several time zones, currencies, settlement cycles, taxes, etc.

Segmentation Analysis

By Custodians

Bank Segment Led Market Owing to Strong Regulatory Trust and Global Settlement Connectivity

By custodians, the market is segmented into bank and non-bank.

The bank emerged as the leading custodian in 2025 owing to the scale, trust, and infrastructure-driven nature of custody services. Banks are preferred by many as they can offer all the services ranging from administration, collateral management, securities lending, tax services, compliance reporting, data analytics, and outsourcing of investment operations. Larger banks are more sought after since they possess strong balance sheets, regulatory standing, access to clearing and settlement facilities, and established connections with asset managers, pension firms, insurers, sovereign wealth firms, and corporates.

The non-bank segment is estimated to grow at a CAGR of 8.1% during the forecast period. Fintech platforms, fund administrators, and other specialized securities services providers are emerging non-bank custodian service providers that cater to needs including faster onboarding, customizable reporting, crypto-custody, private markets, and fund administration. Such service providers are preferred by institutional investors, fund managers, family offices, wealth management solutions, and alternative investment funds.

By Service Type

Custody & Settlement Services Segment Led Market as it Represents Foundational and Non-Discretionary Services

By service type, the market is segmented into core custody & settlement services, asset servicing & corporate actions, reporting, compliance & collateral management, fund administration & accounting, and others.

Core custody & settlement services dominated the service type segment by accounting for 37.9% in 2025. The segment involves asset safekeeping, trade settlement, clearing coordination, securities and cash movements, asset ownership maintenance, position reconciliation, transaction confirmation, and cross-border settlements support. Moreover, it represents the foundational and non-discretionary service segment that institutional investors require to safely keep and transact their financial assets. With AUM in the institutions increasing, there is continued structural strength in the demand for safekeeping and settlement solutions.

Asset servicing & corporate actions segment is anticipated to grow at the CAGR of 9% from 2026 to 2034, as institutional portfolios get bigger, increasingly international in scope, and more diversified in equity, fixed-income, ETF, mutual funds, and alternative asset holdings. The asset servicing & corporate actions business will also experience growth owing to institutional portfolios that are getting bigger, increasingly international in scope, and more diversified in equity, fixed-income, ETF, mutual funds, and alternative asset holdings. Growth in cross-border investing, the growth in funds/ETFs, increased fixed-income holdings, and automation of corporate actions is also contributing the segment growth.

By Asset Type

Equities Segment Led Market Owing to Its Extensive Holding Across Institutional Portfolios and High Transaction Activity

By asset type, the market is segmented into equities, fixed income, funds, alternative assets, and others.

Equities emerged as the leading asset type by accounting for 34.7% market share in 2025. The growth is mainly attributed to their large trading volumes, higher liquidity and wide presence across fund and institutional portfolios. High trading frequency, involvement of asset managers and exchange-traded funds, corporate actions, dividends, proxy voting, and cross-border investments contribute to the high demand for custody services for equities.

Fixed income segment is expected to grow at CAGR of 8.9% between 2026-2034 due to its allocation among pension funds, insurance companies, sovereign wealth funds, commercial banks, and asset managers. It provides steady demand for custody services on account of regular coupons, maturity dates, redemptions, settlement support, income generation, tax reporting, and portfolio reconciliation purposes.

By Client Type

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Institutional Investors Segment Led Market Owing to Large Asset Base

By client type, the market is segmented into institutional investors, corporates, high net worth individuals, and others.

Institutional investors segment dominated the custody services market share of 44% in 2025. This is mainly due to their largest and the most complicated assets portfolios, which require continuous custody, settlement, reconciliation, reporting, and asset servicing functions. Their portfolios are often diverse and spread over multiple markets, currencies, and asset classes, making third-party custodians necessary for providing settlement and clearing services, handling corporate actions, income payments, tax information exchange, fund administration, collateral management, and regulatory reporting. Institutional investors possess high regulatory responsibilities, large portfolio sizes, and complicated operations compared to corporate clients and high-net-worth individuals; therefore, custodial services are mainly used by them.

Corporates segment is projected to grow at a CAGR of 8.6% from 2026 to 2034, due to increasing demands associated with treasury management, capital market operations, liquidity management, and regulatory reporting. Multinational corporations usually conduct operations within different countries and currencies, which requires custodians' involvement in securing and maintaining transparency in financial assets management.

Custody Services Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

North America

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The North America market accounted for USD 15.66 billion in revenue in 2025. The major factors fueling the market growth for custody services in North America due to sizable number of asset managers, pension funds, insurance companies, ETF managers, mutual fund managers, hedge fund managers, banks, and alternative investment managers with diverse and valuable portfolio holdings in stocks, bonds, funds, alternatives, derivatives, and cash instruments. Client types demand custodian services for purposes of safekeeping, settlement, reconciliation, fund accounting, collateral management, securities lending, tax service, and reporting. Other factors influencing demand in the region include its heavy transaction volume, well-developed fund sector, substantial amount of retirement assets, and growing automation of post-trade processes under shorter settlement periods. Leading players in market include BNY, State Street, J.P. Morgan, Citi, Northern Trust, RBC Investor Services, CIBC Mellon, and MUFG Investor Services.

U.S. Custody Services Market

The U.S. market is underpinned by the huge presence of transactional institutions, such as asset management firms, ETF sponsors, mutual fund complexes, pension funds, insurers, hedge funds, and alternative investment managers, all of which require the safekeeping, settlement, reconciliation, income collection, corporate actions processing, reporting, and other post-trade services provided by custodians.

This demand is enhanced by the high level of portfolio turnover in the U.S. market. Portfolio rebalancing, frequent trading and investment activities by ETFs, mutual funds, and hedge funds, and securities lending are among the factors that drive increased demand for custody capabilities.

Europe

Europe is projected to record 8.8% growth rate during the projection period, the second-highest globally, reaching USD 13.66 billion in 2026. The demand for custody services arises due to the regulatory and cross-border nature of fund administration services in the region. The funds used in this market, including UCITS and AIFs, rely on the use of custodian/depositary services, asset custody, fund administration, investor protection, and reporting services among others. Therefore, there is a recurrent demand for custody services for the provision of support in managing regulated fund vehicles across various jurisdictions in Europe. Additionally, cross-border nature of fund distribution in major European economies increases demand for custody services.

U.K. Custody Services Market

The U.K. market is estimated at around USD 4.07 billion in 2026, representing roughly 9.31% of global sales.

Germany Custody Services Market

Germany’s market is projected to reach approximately USD 2.15 billion in 2026, equivalent to 4.93% of global sales.

Asia Pacific

In 2026, the Asia Pacific market is expected to reach USD 10.46 billion, ranking third globally. Custody services in Asia Pacific will be influenced by the rapid institutionalization of savings, growth in the size of domestic capital markets, and increasing involvement of asset managers, pension funds, insurance companies, and international investors. The development of investment activities in equity, fixed income, and other alternative assets in the financial markets of China, India, Japan, and others in Asia Pacific will create an increased demand for custodianship services such as safekeeping, securities settlement, administration of funds, income handling, tax support, and reporting services. The region has the presence of global companies such as HSBC, Standard Chartered, Citi, J.P. Morgan, BNY, State Street, BNP Paribas, and MUFG, together with powerful regional banks such as DBS, UOB, and Nomura. These banks are ideally situated as investors will seek custodians who are capable of managing different market regulations, foreign currency, tax issues, and settlement infrastructure in both developing and developed markets in Asia.

China Custody Services Market

China’s market is projected to remain dominant in Asia Pacific, with 2026 revenues estimated at around USD 3.53 billion, representing 8.08% of global sales.

Japan’s Custody Services Market

Japan’s market is estimated at around USD 2.80 billion in 2026, accounting for roughly 6.40% of global sales.

India Custody Services Market

The Indian market is estimated at around USD 1.81 billion in 2026, accounting for roughly 4.14% of global sales.

South America and Middle East & Africa

Both South America and the Middle East & Africa are expected to grow moderately in the coming years. The South America market is predicted to reach USD 1.70 billion in 2026. Custody services demand in Latin America comes mainly from pension funds, mutual funds, insurance companies, banks, fund managers, sovereign/public investment funds, corporates, and foreign institutional investors. In the Middle East, particularly the GCC countries, demand for custody services is backed up by the development of the capital markets, the issuance of IPOs, investments by sovereign wealth funds, Islamic finance operations, bond and sukuk issuances, and diversification of economies.

GCC Custody Services Market

In 2026, the GCC market is expected to reach USD 0.66 billion, accounting for 1.52% of total revenues

COMPETITIVE LANDSCAPE

Key Industry Players

Competitive Advantage Driven by AI-Powered Optical Sorting, Multi-Sensor Inspection Capabilities, and Integrated Processing Solution

The custody services market has high concentration at the global level, whereby competitive positioning will be mainly defined by asset size under custody, global market connectivity, settlement facilities, regulatory proficiency, asset servicing ability, and technology-driven reporting systems. The leading providers including BNY, State Street Corporation, and J.P. Morgan have remained market leaders owing to their extensive institutional clients, custody services in different jurisdictions, solid balance sheets, regulatory proficiency, and ability to support multi-asset portfolios comprising equities, fixed income, funds, alternatives, and cash investments. Moreover, the competitive advantage of players in the market will be increasingly defined by the ability to offer integrated custody, settlement, asset servicing, fund administration, collateral management, securities lending, regulatory reporting, taxation assistance, and investment operations outsourcing through scalable digital platforms.

LIST OF KEY CUSTODY SERVICES COMPANIES PROFILED

• BNY / The Bank of New York Mellon Corporation (U.S.)
• State Street Corporation (U.S.)
• JPMorgan Chase & Co (U.S.)
• Citigroup Inc. / Citi Securities Services (U.S.)
• Northern Trust Corporation (U.S.)
• HSBC Holdings plc (U.K.)
• BNP Paribas Securities Services (France)
• CACEIS (France)
• Standard Chartered plc (U.K.)
• Deutsche Bank AG (Germany)

KEY INDUSTRY DEVELOPMENTS

• May 2026: Standard Chartered acquired Zodia Custody’s regulated digital asset custody business, strengthening its institutional digital asset custody capabilities and supporting its strategy to build an end-to-end digital assets offering.
• January 2026: State Street and QNB Group entered into an alliance to launch a new custody servicing platform in Qatar, enhancing custody services and asset servicing in the Gulf Cooperation Council region through a joint partnership of State Street and QNB’s strengths.
• October 2025: Citi announced plans to launch crypto custody services in 2026, strengthening its digital asset servicing capabilities and reflecting growing institutional demand for regulated custody of cryptocurrencies and tokenized assets.
• July 2025: BNP Paribas Securities Services signed a deal to acquire the custody and depositary bank operations of HSBC Continental Europe S.A. in Germany.
• March 2025: State Street Corporation acquired Mizuho's global custody business lines outside of Japan, which will add USD 580 billion in AUC to State Street's global custody business scope.

REPORT COVERAGE

The global custody services market analysis includes a comprehensive study of the market size & forecast by all the market segments included in the report. It includes details on the market dynamics and market trends expected to drive the market over the forecast period. It provides information on key aspects, including an overview of technological advancements, the regulatory environment, and service expansion. Additionally, it details partnerships, mergers & acquisitions, and key Industry developments. The global market research report also provides a depth competitive landscape with information on the market share and profiles of key operating players.

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