Global Custody Pro - 17 October 2025

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📰 Welcome to the Newsletter

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. Reply to this email with feedback or connect with us on LinkedIn.

Table of Contents

• 🌏 Global Custody News

  • Citigroup Q3 Profit Rises 16% on Revenue Growth

  • JPMorgan securities services revenue rises 7%

• 🚀 Digital Asset News

  • U.S. Bank launches digital assets division

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🌏 Global Custody News

Citigroup Q3 Profit Rises 16% on Revenue Growth

Citigroup's Securities Services business reported revenues of $1.5 billion for the third quarter 2025, an increase of 7% from the prior-year period. The company reported non-interest revenue grew 14%, driven by a mark-to-market gain and higher custody fees resulting from a 13% increase in assets under custody and administration. The revenue growth was partially offset by higher lending revenue share arrangements with Banking, which reduced reported Securities Services revenue.

Assets under custody and administration reached $30 trillion at quarter end, compared to $28 trillion in the prior quarter and $26 trillion in the year-ago period. The 13% year-over-year increase in custody assets drove the higher custody fee revenue. Net interest income of $702 million was unchanged from the prior-year period, as lower deposit spreads were primarily offset by higher deposit balances.

The Services segment, which includes Securities Services and Treasury and Trade Solutions, reported net income of $1.8 billion, up 9% year-over-year. Operating expenses for the segment increased 5%, driven by higher compensation and benefits expenses including severance, as well as higher volume and revenue-related expenses. Securities Services operates under revenue sharing agreements with Banking for products sold to corporate lending clients, which generally results in a reduction in reported Securities Services revenue.

JPMorgan securities services revenue rises 7%

JPMorgan Chase's Securities Services business generated revenue of $1.4 billion in the third quarter of 2025, a 7% increase from the year-earlier period, as higher client activity and market valuations drove fee growth. The business held $40.1 trillion in assets under custody at quarter-end, up 12% year-over-year, reflecting continued client asset growth and elevated market levels.

The revenue growth was supported by higher deposit balances and increased fees from client activity, though deposit margin compression partially offset gains. Average client deposits across the Commercial & Investment Bank's Payments and Securities Services businesses totaled $1.1 trillion, up 15% from $966.0 billion a year earlier. The broader CIB division reported net income of $6.9 billion, up 21% year-over-year, with total revenue rising 17% to $19.9 billion.

Within the CIB, Markets & Securities Services revenue reached $10.4 billion, up 24% year-over-year. Fixed Income Markets revenue increased 21% to $5.6 billion, whilst Equity Markets rose 33% to $3.3 billion. The division's expense base increased 11% to $9.7 billion, driven primarily by higher compensation and brokerage expenses. Credit costs totaled $809 million, reflecting net lending activity and charge-offs related to what the company described as borrower-related collateral irregularities in certain secured lending facilities.

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🚀 Digital Asset News

U.S. Bank launches digital assets division

U.S. Bank, the fifth-largest bank in the United States with $686 billion in assets, announced the establishment of a new Digital Assets and Money Movement organisation to accelerate development of emerging digital products including stablecoin issuance, cryptocurrency custody and asset tokenisation. Jamie Walker, a payments industry veteran with more than 20 years at the bank, will lead the new division.

Walker has spent the past eight years leading Merchant Payment Services and serving as CEO of Elavon, the bank's global merchant payment acquiring business. He will remain in his current role whilst the company conducts a search for his successor, after which he will report to Dominic Venturo, chief digital officer at U.S. Bank. The bank stated that Walker's global experience in payments and understanding of customer needs across segments will be vital as the organisation innovates in digital banking and payments.

The new organisation will serve as a hub for knowledge and expertise to accelerate progress across U.S. Bank in digital assets, which the company said are rapidly evolving across financial services. The bank has positioned itself as a leader in payments innovation, including early integration with Real Time Payments and FedNow networks and expansion of embedded payment solutions.

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