Custody rebooted: How the asset servicing industry must adapt for the digital future

Pete Cherecwich
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Pete Cherecwich: President of Asset Servicing, Northern Trust, USA

Journal of Securities Operations & Custody, 2021, vol. 14, issue 1, 42-53

Abstract: This paper describes a vision of the securities services landscape in 2030 and beyond based on current technology and industry trends alongside Northern Trust’s own experience and innovation research. It explores the components shaping that future, such as blockchain, digital assets and decentralised finance (DeFi), and the underlying drivers of change including regulatory developments, an increasing demand for sustainability and the search for alpha. The complete, and potentially profound, nature of this transition will result in each step in the industry’s value chains being required to grow increasingly astute, agile and creative. Within this context, custodians will become a conduit for their clients to a new digital world — navigating the complexity of an evolving landscape and highlighting opportunity whilst continuing a safeguarding role. The paper explores practical steps that all industry participants will need to consider in order to competitively position themselves for this step change in the belief that, ultimately, the conclusion of this process will be a more efficient, transparent and flexible ecosystem enabling products and services that are unimaginable today.

Keywords: Digitisation; Blockchain; decentralised finance; digital assets; digital infrastructure; cryptocurrency (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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