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Global Custody Pro - 15 August 2025

Global Custody Pro - 15 August 2025

ASX, Computershare, TMX, Coinbase, BNY and more

Global Custody Pro
August 14, 2025 • Reading Time: 10 minutes

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Welcome to Global Custody Pro, read by custody professionals like you. I'm Brennan McDonald, Managing Editor. I write about the global custody industry, having spent over 12 years in financial services, including working at a global custody bank. An AI voice reads the audio version of this newsletter. Have feedback? Just reply to this email or connect with us on LinkedIn.

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ASX Reports 7% Revenue Growth Amid Scrutiny

ASX Limited reported solid financial performance for the year ending June 30, 2025, with operating revenue climbing 7% to $1.11 billion and underlying net profit after tax rising 7.5%. CEO Helen Lofthouse highlighted strong performances across the Markets division (up 10.7%), Technology and Data (up 8%), and Securities and Payments (up 7.4%), while Listings revenue remained stable at $238 million. The company declared a final dividend of 112.1 cents per share, bringing the full-year payout to 223.3 cents.

The results come as ASX faces heightened regulatory scrutiny, with ASIC launching a comprehensive compliance assessment examining the exchange operator's governance, capability and risk management frameworks. CFO Andrew Tobin stated that the company anticipates incurring $25-35 million in additional operating expenses in FY2026 to address the inquiry, with the findings to be reported by March 2026. Despite these costs, management maintained its medium-term target of expanding EBITDA margins from the current 62.8% level.

Looking ahead, ASX has guided to FY2026 capital expenditure of $170-180 million as it continues its technology modernisation program, including the CHESS replacement project, with a target go-live for Release 1 in Q4 2026. The company's Accelerate program aims to improve operational risk management and resilience, while new growth initiatives include market quality improvements and data products. Management reaffirmed its underlying return on equity target range of 13-14.5%, citing the strength of its diversified business portfolio.

Computershare profit surges 15%, guides higher

Computershare delivered strong full-year results with management earnings per share rising 15.0% to 135.1 cents, beating internal expectations as operational performance offset margin income pressures. The global registry and corporate trust services provider reported management EBIT excluding margin income of $411.9 million, up 17.4%. In comparison, total revenue increased 4.4% to $3.1 billion, despite the disposal of its US Mortgage Services business in May 2024.

The company saw growth across all three core divisions, with Corporate Trust EBIT jumping 7.3%, Employee Share Plans surging 17.4%, and Issuer Services rising 1.4%. Operating margins expanded 150 basis points to 17.5% as the company achieved $86 million in cost savings. Margin income declined 2.8% to $759.1 million as lower yields were partially offset by an 8% increase in average client balances to $29.9 billion.

Looking ahead, Computershare expects continued earnings growth with FY26 management EPS guided around 140 cents, representing 4% growth. The company anticipates EBIT excluding margin income to rise approximately 5%, while margin income is expected to decline to around $720 million based on current interest rate curves. Management highlighted the balance sheet's strength, with a net debt-to-EBITDA ratio of just 0.42 times, enabling AU$750 million in share buybacks during FY25 and a 14.3% increase in the final dividend to 48 cents per share.

ISDA, FIA Seek Clarity on RBA Resolution Powers

ISDA and FIA have submitted a detailed response to the Reserve Bank of Australia's consultation on guidance for the Australian Clearing and Settlement Facility Resolution Regime, welcoming the transparency initiative while identifying several areas that require clarification. The associations specifically called for more detail on stakeholder communication protocols, entry conditions for resolution, and the scope of the RBA's direction powers.

The submission highlighted concerns about maintaining predictability for market participants, with the associations cautioning against amending CCP recovery rules once resolution has been triggered or introducing fundamental changes to loss allocation processes. They noted that other jurisdictions, such as the UK and EU, provide more detailed lists of circumstances that could trigger resolution, suggesting that the RBA adopt similar specificity.

Looking ahead, the associations emphasised the importance of compensation mechanisms aligned with the "no creditor worse off" principle from FSB Key Attributes. They recommended explicit safeguards limiting the use of tools such as variation margin haircutting and cash calls on clearing members during resolution. They stressed that any tools allocating losses to market participants should be ruled out in non-default scenarios and accompanied by strict safeguards in default-loss scenarios.

TMX Targets 50% Revenue from Global Insights

TMX Group is advancing its strategic shift towards data and analytics businesses, with Global Insights now accounting for more than 40% of total revenue, CFO David Arnold told the Canaccord Genuity Boston Conference. Arnold said the company maintains its long-term target for Global Insights to exceed 50% of revenue, supported by "high growth" businesses including TMX Verifi and Trayport.

The company's recent acquisitions are meeting "very high expectations," according to Arnold, with TMX Verifi growing "in the teens" on a pro forma basis since the January 2024 closing. Trayport has expanded beyond its European base, generating almost £7 million annually in the United States from a standing start. At the same time, the company pursues opportunities in Japan and new asset classes, including renewables and oil.

Despite record results driven by diversification, TMX faces headwinds in capital formation, with Arnold acknowledging IPO activity is at "cyclical lows." He said Canada typically follows US market trends with a three to nine-month lag, and the company sees a strong pipeline heading into the second half of 2025. However, "one doesn't create a streak" following a recent corporate IPO.

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🚀 Digital Asset News

Coinbase CFO Outlines Expansion Beyond Crypto Trading

Coinbase is diversifying beyond traditional crypto spot trading, with CFO Alesia Haas revealing that 40% of revenue now comes from subscription services. The company is also pursuing expansion into derivatives, payments, and the tokenisation of traditional assets. Speaking at an Oppenheimer conference, Haas highlighted derivatives volume reaching $1 trillion in Q2, up from $800 billion in Q1, despite declining spot volumes.

The regulatory environment has shifted favourably with the GENIUS Act becoming the first US crypto law. At the same time, the CLARITY Act awaits Senate action with potential passage by year-end, according to Haas. Coinbase secured a MICA licence in Luxembourg for European operations and is expanding internationally with licences in Argentina and registration in India, though Haas noted these markets won't contribute materially to revenue for several years.

Strategic partnerships are central to Coinbase's growth strategy, with over 240 institutions utilising its infrastructure. Notably, recent announcements include deals with JPMorgan Chase, PNC, and Shopify for USDC payment acceptance across one million merchants. The company strengthened its balance sheet with a $3 billion convertible bond offering following Q2, adding to its $9.3 billion in USD resources and positioning itself for potential acquisitions while maintaining positive adjusted EBITDA across all operating environments.

BNY Named Custodian for OpenEden’s Token

OpenEden announced the appointment of BNY and its affiliates as investment manager and primary custodian for its flagship “Tokenized U.S. Treasury Bills ($TBILL) Fund”, the world's first tokenized U.S. Treasury fund to receive an investment grade "A" rating from Moody's. The strategic relationship was announced in Singapore on August 13, 2025.

The $TBILL fund, launched in 2023, offers investors direct exposure to a pool of short-dated U.S. Treasury Bills and overnight reverse repurchase agreements through the issuance of the TBILL token. BNY Investments Dreyfus, one of the largest liquidity managers in the industry with more than five decades of proven expertise, will manage the fund on OpenEden's behalf as sub-manager. BNY will serve as primary custodian, leveraging its established infrastructure.

"Combining our tokenization platform with BNY's global scale and deep fiduciary expertise enables us to create a new standard for trust and access in the digital asset space," said Jeremy Ng, Founder and CEO of OpenEden. Jose Minaya, Global Head of BNY Investments and Wealth, stated that BNY serves as "a trusted bridge between traditional finance and emerging technology for clients" and expressed pride in collaborating with OpenEden to support the end-to-end lifecycle of tokenised assets.

Circle posts $482M loss on IPO charges

Circle reported second-quarter fiscal 2025 revenue and reserve income of $658 million, up 53% year-over-year, though the company posted a net loss of $482 million due to significant IPO-related charges. The loss included $424 million in stock-based compensation resulting from vesting conditions met by the June IPO, as well as $167 million from the increased fair value of convertible debt. Adjusted EBITDA grew 52% to $126 million.

The stablecoin issuer saw USDC in circulation grow 90% year-over-year to $61.3 billion at quarter end, with circulation further expanding to $65.2 billion as of August 10, 2025. Reserve income increased 50% to $634 million, driven by 86% growth in average USDC circulation, though partially offset by a 103 basis point decline in reserve return rate. The company's successful $1.2 billion IPO in June raised $583 million in net proceeds.

Looking ahead, Circle expects USDC circulation to grow at a 40% compound annual growth rate over multiple years through the cycle. For fiscal 2025, the company projects other revenue of $75-$85 million, an RLDC margin of 36-38%, and adjusted operating expenses of $475-$490 million. CEO Jeremy Allaire highlighted accelerating interest in building on stablecoins across every significant sector of the financial industry.