- Ripple and BCG estimate digital asset custody could improve financial results by up to $100 million for banks holding 200B–300B in assets.
- Institutional custody now covers more than 30% of digital assets outside centralized exchanges, with governance and interoperability gaining importance.
- Banks are exploring self-custody, Wallet-as-a-Service and multi-custodian models to support tokenization, stablecoins, payments and collateral management.
Ripple and Boston Consulting Group (BCG) say digital asset custody is moving beyond secure storage as financial institutions expand blockchain-based services. Their latest report examines how governance, network connections and financial system integration shape custody decisions. BCG estimates a regional bank with $200 billion to $300 billion in assets could improve its financial results by up to $100 million.
Security Is No Longer the Only Custody Priority
According to BCG, institutional custody now holds more than 30% of digital assets outside centralized exchanges. However, security and private key management have become basic requirements as regulation develops in Europe and the United States.
The report identifies governance controls, interoperability and integration with existing financial systems as growing priorities. It also highlights how increasing bot and artificial intelligence activity makes approval procedures important alongside cryptographic security.
Consequently, institutions are assessing custody based on how securely they can control, transfer and use assets across financial operations. The report draws on contributions from more than 20 financial institution leaders.
Banks and Fintechs Consider Different Custody Models
BCG describes several approaches to custody, depending on institutional needs. Wallet-as-a-Service is gaining traction among retail-focused and payments fintechs, while large banks increasingly license self-custody technology.
Another approach combines custody, settlement assets, payment systems, treasury and execution through one provider. Institutions can also use multiple custodians through a shared orchestration layer, helping manage assets across different networks.
The report says custody supports tokenization, stablecoin issuance, payments, treasury, lending and collateral management. These applications expand its role beyond asset storage and risk control.
Ripple and BCG Link Custody to Financial Returns
BCG estimates that combining digital asset applications with suitable custody decisions could generate up to $100 million in improved financial results for a regional bank with a $200 billion to $300 billion balance sheet.
The report also expects the custody market to consolidate around providers that integrate services, connect networks or offer modular infrastructure. Meanwhile, Ripple provides custody technology alongside stablecoins, payments, treasury management, liquidity and trade execution.
Ripple commissioned BCG to produce the report, Beyond Safekeeping: Custody as the Operating Layer Beneath Digital Finance. The research examines how institutions can select custody models based on their digital asset strategies.