Ripple and Boston Consulting Group (BCG) estimate that digital asset custody could improve a bank's financial results by up to $100 million for institutions holding $200 billion to $300 billion in assets. In their latest report, the two firms argue that custody has moved beyond secure storage as financial institutions expand blockchain-based services, with governance, network connectivity and integration into the broader financial system now shaping custody decisions. For banks weighing digital asset strategies, the analysis frames custody as an operating decision with direct financial implications rather than a back-office storage function.

Security Is No Longer the Only Custody Priority

Institutional custody now holds more than 30% of digital assets outside centralized exchanges, according to BCG. As regulation develops in Europe and the United States, security and private key management have become baseline requirements rather than differentiators. The report identifies governance controls, interoperability and integration with existing financial systems as growing priorities. It also notes that rising bot and artificial intelligence activity is making robust approval procedures increasingly important alongside cryptographic security.

As a result, institutions are assessing custody based on how securely they can control, transfer and use assets across financial operations. The findings draw on contributions from more than 20 leaders at financial institutions, reflecting how institutions themselves are reordering custody priorities as regulatory frameworks develop in Europe and the United States.

Banks and Fintechs Consider Different Custody Models

BCG outlines 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 model combines custody, settlement assets, payment systems, treasury and execution through a single provider. Institutions can also engage multiple custodians through a shared orchestration layer, helping them manage assets across different networks.

According to the report, custody underpins tokenization, stablecoin issuance, payments, treasury, lending and collateral management — applications that extend its role well beyond asset storage and risk control. On that view, custody sits upstream of an institution's broader digital asset plans, which is why the report focuses on how institutions can select custody models aligned with their digital asset strategies.

Ripple and BCG Link Custody to Financial Returns

BCG estimates that pairing 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 anticipates consolidation in the custody market around providers that integrate services, connect networks or offer modular infrastructure.

For observers of the institutional digital asset space, the report points to two developments worth tracking: how regulation continues to take shape in Europe and the United States, and whether custody providers consolidate around integrated, network-connected or modular offerings as the report anticipates.

Ripple, which provides custody technology alongside stablecoins, payments, treasury management, liquidity and trade execution, 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 aligned with their digital asset strategies. The full report is available via Ripple's official insights page.