Evolution of Custody Services and Market Dynamics

Banks are gradually entering the cryptocurrency custody market, which is currently dominated by New York Trust companies and other state chart of trust companies. The competition in custody services has intensified, leading to more competitive pricing and innovative offerings. Banks may adopt the build, buy, or partner approach to enter this market, with sub-custody being a potential model. As the market evolves, there will be a shift towards offering direct access to assets like Bitcoin. Despite uncertainties surrounding Ethereum as a security, there is anticipation for its development and potential staking opportunities. The entry of institutional giants like BlackRock into tokenization hints at the increasing relevance and adoption of blockchain-based assets.