ASSET MANAGEMENT FIRM NORTHERN TRUST TO START CRYPTO CUSTODY BUSINESS

Last updated: June 19, 2025, 19:54 | Written by: Sam Bankman-Fried

The world of finance is constantly evolving, and one of the most significant developments in recent years has been the rise of digital assets like cryptocurrencies. Northern Trust has been selected by Haycen to provide global custody and money market fund services. Luke Sully, founder and CEO of Haycen, comments: This is a key moment in the evolution of new digital-first financial services and represents a step forward for our stablecoin businesses to beWhile once considered a fringe investment, digital assets are now attracting the attention of major institutional players.In a move that underscores this growing acceptance, Northern Trust Corp, a leading global asset management firm with approximately $954 billion in total assets under management, has announced its plans to launch a custody service for digital assets. Chicago-based asset management firm Northern Trust Corp. is looking to begin a custody service for digital assets such as cryptocurrencies. Northern Trust Corp, a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, Bloomberg reported July 31. The company s head of MoreThis decision signals a significant shift in the traditional finance landscape and highlights the increasing demand for secure and reliable custody solutions for cryptocurrencies and other digital holdings. London SC Ventures, the innovation and ventures unit of Standard Chartered, and Northern Trust, a leading provider of asset servicing, have entered into an agreement to launch Zodia Custody, an institutional-grade custody solution for cryptocurrencies. Cryptocurrencies already represent 0.3% of the world s currency and bank deposits and are forecast to continue growing with aThis article will explore the details of Northern Trust's move, the factors driving it, and the implications for the broader financial industry.

For over 135 years, Northern Trust has been a pillar of the financial world, known for its exceptional service, financial expertise, integrity, and innovation. TradFi giant Northern Trust (NTRS) will provide custody and cash management services for trade finance focused stablecoin issuer Haycen, the company said in a press release Thursday.With approximately $15.5 trillion in assets under administration and custody, and $1.5 trillion in assets under management as of March 31, the company’s entry into the crypto custody space is a testament to the growing maturity of the digital asset market.This is not their first foray into the digital asset space, as they’ve been experimenting with enterprise blockchain since 2015. Northern Trust Securities LLP and Northern Trust Investor Services Limited, 50 Bank Street, London E14 5NT. Northern Trust Global Services SE, 10 rue du Ch teau d Eau, L-3364 Leudelange, Grand-Duch de Luxembourg, incorporated with limited liability inBut what does this mean for institutional investors, the future of crypto, and the custody industry as a whole?

Why is Northern Trust Entering the Crypto Custody Market?

Several factors are driving Northern Trust's decision to enter the crypto custody market.Here are some of the key reasons:

Growing Institutional Interest: Institutional investors, including hedge funds, family offices, and asset managers, are increasingly interested in investing in cryptocurrencies.However, many are hesitant due to concerns about security, regulatory uncertainty, and the lack of institutional-grade custody solutions.
Market Demand: The demand for secure and reliable crypto custody services is growing rapidly.Institutional investors need a trusted third party to safeguard their digital assets and provide related services such as reporting, valuation, and tax support.
Competitive Landscape: Other major financial institutions are also entering the crypto custody market, creating a competitive landscape that Northern Trust wants to be a part of.By offering crypto custody services, Northern Trust can attract new clients and retain existing ones.
Technological Advancements: Advancements in technology, such as blockchain and cryptography, have made it possible to securely store and manage digital assets. IMPORTANT INFORMATION. Northern Trust Asset Management (NTAM) is composed of Northern Trust Investments, Inc, Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K, NT Global Advisors, Inc, 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of TheThese advancements have paved the way for institutional-grade crypto custody solutions.
Evolution of Digital Finance: With traditional finance and decentralized finance (DeFi) on a collision course, the opportunity to be at the forefront of this revolution is lucrative. 据彭博社7月31日报道，Northern Trust是一家全球领先的资产管理公司，管理着9540亿美元的总资产，该公司计划推出数字资产托管服务。 Northern Trust企业和机构业务负责人Pete Cherecwich向彭博社表示，该公司已开始制定一项战略，以确保加密货币等托管式数字资产的This allows Northern Trust to establish themselves as a leader in the future of finance.

Northern Trust's Crypto Custody Strategy

While details are still emerging, Northern Trust has begun developing a strategy to secure custody-held digital assets.Their approach likely involves a combination of:

Cold Storage: Storing digital assets offline in secure vaults to protect them from hacking and theft.
Multi-Signature Wallets: Requiring multiple approvals to access and transfer digital assets, adding an extra layer of security.
Hardware Security Modules (HSMs): Using specialized hardware devices to store and manage cryptographic keys.
Cybersecurity Measures: Implementing robust cybersecurity measures to protect against cyberattacks and data breaches.
Regulatory Compliance: Adhering to all applicable regulations and compliance requirements.

The Zodia Custody Partnership

A key component of Northern Trust’s strategy is its partnership with Standard Chartered's innovation and ventures unit, SC Ventures, to launch Zodia Custody.This institutional-grade custody solution for cryptocurrencies aims to provide a secure and compliant platform for institutional investors.Zodia Custody leverages the expertise of both Northern Trust and Standard Chartered to deliver a best-in-class custody solution.Pete Cherecwich, president of corporate and institutional services at Northern Trust, has expressed his belief that Zodia's capabilities will enable institutional asset owners, family offices, and asset managers to invest in a range of cryptocurrencies as interest in these innovative financial instruments grows.Zodia Custody is regulated in key jurisdictions, showcasing a commitment to compliance.

Services Offered by Northern Trust's Crypto Custody Business

Northern Trust's crypto custody service is expected to offer a range of services, including:

Secure Storage: Securely storing digital assets using a combination of cold storage, multi-signature wallets, and HSMs.
Transaction Processing: Processing cryptocurrency transactions, including deposits, withdrawals, and transfers.
Reporting and Valuation: Providing reporting and valuation services to help clients track their digital asset holdings.
Tax Support: Providing tax support to help clients comply with tax regulations related to digital assets.
Compliance: Ensuring compliance with all applicable regulations and compliance requirements.
Tokenization: Exploring tokenization strategies and services to enable clients to unlock the value of their assets.
Yield Generation: Investigating opportunities for yield generation through staking and lending of digital assets (with appropriate risk management).

Haycen Partnership and Stablecoin Integration

Northern Trust's commitment to the digital asset space extends to stablecoins.The firm has been selected by Haycen, a trade finance-focused stablecoin issuer, to provide global custody and money market fund services. Pete Cherecwich, president of corporate and institutional services at Northern Trust, said, Zodia s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments.This partnership marks a key moment in the evolution of digital-first financial services, enabling Haycen to advance global commerce with trust and security. In addition to its $1.5 trillion in assets under management, as of March 31, the company had $15.5 trillion in assets under administration and custody. The new unit comes amid a crypto market sell-off that has left bitcoin s price down 30% in the past two weeks and roughly 70% down from the asset s all-time high last November.Luke Sully, founder and CEO of Haycen, emphasized the significance of this collaboration in fostering trust within the stablecoin ecosystem.

Impact on the Cryptocurrency Market

Northern Trust's entry into the crypto custody market is expected to have a positive impact on the cryptocurrency market in several ways:

Increased Institutional Adoption: By providing institutional-grade custody solutions, Northern Trust can encourage more institutional investors to enter the crypto market.
Enhanced Security: Northern Trust's expertise in custody and security can help to improve the overall security of the crypto market.
Greater Liquidity: Increased institutional participation can lead to greater liquidity in the crypto market.
Price Stability: Increased institutional participation can help to stabilize the prices of cryptocurrencies.
Legitimacy: The involvement of a reputable firm like Northern Trust adds legitimacy to the digital asset space.

Challenges and Considerations

While Northern Trust's move into crypto custody is promising, there are also challenges and considerations to keep in mind:

Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving, which can create uncertainty for custody providers.
Cybersecurity Risks: Cybersecurity risks are a constant threat in the crypto market, and custody providers must invest heavily in security measures to protect against attacks.
Market Volatility: The crypto market is highly volatile, which can create challenges for custody providers in terms of valuation and risk management.
Competition: The crypto custody market is becoming increasingly competitive, with many players vying for market share.
Technological Complexity: Digital assets and blockchain technology are complex, requiring significant expertise to manage and secure.

The Importance of Custody in the Digital Asset Ecosystem

Custody plays a crucial role in the digital asset ecosystem, providing a secure and reliable way for investors to store and manage their digital holdings.A reliable custody solution is essential for the widespread adoption of cryptocurrencies and other digital assets by institutional investors.Without proper custody solutions, institutional investors will be hesitant to enter the market due to concerns about security and regulatory compliance. Northern Trust is an early leader in the enterprise blockchain space. After building a private equity fund administration tool on Hyperledger Fabric in 2025, the 133-year-old company colaunched aAs the market matures, robust custody solutions become an integral part of the overall infrastructure.

How Does Northern Trust Differentiate Itself?

In a crowded market, Northern Trust aims to differentiate itself through its:

Reputation and Trust: A long history of providing secure and reliable custody services.
Global Reach: Ability to serve clients around the world.
Technology and Innovation: Commitment to using cutting-edge technology to secure and manage digital assets.
Regulatory Compliance: Focus on adhering to all applicable regulations and compliance requirements.
Established Infrastructure: Leveraging existing infrastructure and expertise in traditional asset servicing.

Blockchain Technology and the Future of Custody

Northern Trust recognizes the transformative potential of blockchain technology. Northern Trust Corp, a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, Bloomberg reported July 31. The company s head of corporate and institutional business Pete Cherecwich told Bloomberg that the company has started developing a strategy toJustin Chapman, Group Head of Strategic Partnerships, Digital Assets and Financial Markets at Northern Trust, has explored the evolving capabilities of blockchain, including its role in enhancing the efficiency of Voluntary Carbon Markets.Northern Trust’s involvement in initiatives like The Northern Trust Carbon Ecosystem highlights its commitment to using blockchain to drive innovation and sustainability.

Questions and Answers About Crypto Custody

What exactly is crypto custody?

Crypto custody refers to the secure storage and management of digital assets, such as cryptocurrencies, on behalf of individuals or institutions. Northern Trust Corp (NASDAQ:NTRS), a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, BloombergCustody providers act as custodians, safeguarding the private keys that are needed to access and control these assets.These keys are what proves ownership of the digital assets. Northern Trust Corp, a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, Bloomberg reported July 31.Like a bank, but instead of holding physical cash, they are holding your “digital cash”.

Why is crypto custody important for institutional investors?

Institutional investors need a secure and reliable way to store and manage their digital assets.Crypto custody services provide the necessary security, compliance, and operational support that institutional investors require to participate in the crypto market.

What are the different types of crypto custody solutions?

There are several types of crypto custody solutions, including:

Cold Storage: Storing digital assets offline in secure vaults.
Hot Wallets: Storing digital assets online, allowing for faster transactions (but with higher risk).
Multi-Party Computation (MPC): Using cryptographic techniques to distribute private keys across multiple parties, eliminating a single point of failure.
Hardware Security Modules (HSMs): Using specialized hardware devices to store and manage cryptographic keys.

What are the risks associated with crypto custody?

The risks associated with crypto custody include:

Cybersecurity Risks: Hackers may attempt to steal private keys and gain access to digital assets.
Regulatory Risks: Regulatory changes could impact the legality or viability of crypto custody services.
Operational Risks: Custody providers may experience operational failures, such as system outages or data breaches.
Counterparty Risks: Custody providers may become insolvent or experience financial difficulties.

What are the key considerations when choosing a crypto custody provider?

Key considerations when choosing a crypto custody provider include:

Security: The provider's security measures and track record.
Compliance: The provider's compliance with regulatory requirements.
Insurance: The provider's insurance coverage.
Reputation: The provider's reputation and experience in the custody industry.
Technology: The provider’s tech stack and ability to adapt to the rapidly changing landscape.

Conclusion: The Future of Asset Management is Digital

Northern Trust's decision to launch a crypto custody business is a significant milestone in the evolution of the financial industry. Northern Trust has been selected by Haycen to provide global custody and money market fund services. Luke Sully, founder and CEO of Haycen, comments: This is a key moment in the evolution of new digital-first financial services and represents a step forward for our stablecoin businesses to be trusted with advancing global commerce.It signals the growing acceptance of digital assets by institutional investors and highlights the increasing demand for secure and reliable custody solutions. View community ranking In the Top 50% of largest communities on Reddit Asset Management Firm Northern Trust to Start Crypto Custody BusinessAs the crypto market continues to mature, custody services will play a critical role in facilitating institutional adoption and driving further growth.The move of Northern Trust shows a commitment to innovation and will help accelerate the adoption of digital assets within traditional finance. Northern Trust Corp, a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, Bloomberg reported July 31.[BREAK] The company's head of corporate and institutional business Pete Cherecwich told Bloomberg that the company has started developing a strategy to secure custody-held digital assets such asWith its experience, resources, and commitment to security and compliance, Northern Trust is well-positioned to become a leading player in the emerging crypto custody market.This is not just about cryptocurrencies; it’s about the tokenization of assets, new financial models, and a future where finance is more accessible, efficient, and transparent.

Key Takeaways:

Northern Trust, a leading asset management firm, is entering the crypto custody market.
This move is driven by growing institutional interest and demand for secure custody solutions.
Northern Trust is partnering with Standard Chartered to launch Zodia Custody.
The company is offering a range of services, including secure storage, transaction processing, and reporting.
Challenges include regulatory uncertainty, cybersecurity risks, and market volatility.
The future of asset management is increasingly digital, and custody services are essential for institutional adoption.

If you're an institutional investor looking for a secure and reliable crypto custody solution, consider exploring Northern Trust's offering and how it can help you navigate the evolving digital asset landscape.