Traditional financial custodians such as Northern Trust and BNY Mellon are wary of entering the crypto market due to regulatory and market risks, but Architect Partners expects that to change in the future, representing “the same threat and opportunity for building specialized digital and crypto asset custody businesses.” The crypto winter also puts pressure on custodians and slows or stops the growth of assets under custody, leading to flat or reduced revenues and recruitment of financial staying power and conviction that a progress is coming,” according to Architect Partners.
