The custody wars: whoever controls digital asset custody controls trillions

A quiet conflict rages on Wall Street and in crypto startup server rooms. It does not create headlines, such as Bitcoin price increases, and it lacks the viral nature of meme coin rallies. But it could determine who controls and profits from digital finance’s future - digital asset custody is critical.

BNY Mellon CEO on why they now offer custody to crypto assets

Source: X

The value of assets held in custody is in excess of $300 trillion. Traditional custodians such as BNY Mellon, State Street and JPMorgan receive fees for keeping trillions of dollars in stocks, bonds and other securities safe, accessible and compliant. Indeed, it is estimated fees from custody services were “at approximately USD 42.21 billion in 2025 and projected to reach USD 60.32 billion by 2031.” For decades, the job was important but, nonetheless, dull back-office work. Next came Bitcoin, Ethereum and the tokenisation of real-world assets such as real estate, equities, funds and even government bonds. Resultant is …