Why Banks Are Reclaiming Control of Crypto Custody

[AIcash]

The restructuring of Zodia Custody by Standard Chartered reflects a deeper shift in how financial institutions view digital assets. Crypto custody is now a high-value, strategic business, with the global market already exceeding $1 trillion and projected to grow rapidly in the coming decade. For banks, owning custody means controlling client relationships, security, and one of the most profitable parts of the digital asset value chain.

At the same time, this raises new competition for crypto-native firms like Coinbase Custody and BitGo, which have historically dominated the space. While these platforms still hold significant market share, traditional banks entering with regulatory backing and institutional trust could reshape the landscape. The key question now is whether crypto-native providers can maintain their edge as banks fully commit to bringing digital asset services under their own roof.

[kevin1]

banks really said “thanks for testing this out, we’ll take it from here”