Global Custody Pro - 17 September 2025

📰 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. Have feedback? Just reply to this email or connect with us on LinkedIn.

Table of Contents

• 🌏 Global Custody News

  • OCC Resets Banking Risk Tolerance Framework

  • BNP Paribas, JP Morgan Adopt DTCC Workflow

• 🚀 Digital Asset News

  • LSEG Launches Blockchain Platform for Private Fund …

  • BitGo Adds Three Board Directors

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🌏 Global Custody News

OCC Resets Banking Risk Tolerance Framework

Jonathan V. Gould, the Comptroller of the Currency, told the Financial Stability Oversight Council on September 10, 2025, that the OCC is "resetting the risk tolerance for the federal banking system" through sweeping changes to chartering, regulation, and supervision. The Comptroller announced the agency has elevated its chartering and licensing function to ensure quicker decisions on de novo charters and bank mergers, reversing what he described as a "de facto 'no' policy."

The reforms represent a significant shift from the post-2008 regulatory framework, which Gould said "sought to micromanage bank balance sheets" and reduced examinations to "procedural box-checking." The OCC will focus on capital and liquidity reforms with other banking agencies, addressing what the Comptroller called "far too complex and opaque" current approaches. Community banks will receive priority, with plans to revise the community bank leverage ratio framework and raise regulatory asset thresholds.

Looking ahead, Gould said the OCC will tailor bank supervision to eliminate examination activities unrelated to material financial risks, specifically mentioning reforms for fair lending, capital, liquidity, the Community Reinvestment Act, and third-party risk management. The agency is also implementing the GENIUS Act within statutory deadlines and using its licensing process to address debanking issues consistent with the President's executive order. The Comptroller emphasised that financial stability "depends upon economic growth" rather than risk elimination strategies.

BNP Paribas, JP Morgan Adopt DTCC Workflow

DTCC announced that BNP Paribas and J.P. Morgan have joined its CTM automated tri-party matching workflow for prime brokers, with both firms targeting implementation by the end of 2025. The workflow standardises and automates the delivery of hedge fund trade files to prime brokers, addressing current inefficiencies where brokers receive trade details in various formats at different times.

The CTM system provides prime brokers with a golden copy of transaction details when trades match between hedge funds and executing brokers, enabling real-time standardisation of the trade allocation process. The workflow synchronises trade communication across all prime brokers, provides automated real-time notifications, and enriches transactions with settlement instructions through DTCC's ALERT SSI database.

The adoption comes as the UK, EU, Switzerland and Liechtenstein prepare to transition to T+1 settlement by October 2027. Wayne Howard, Global Head of Prime Brokerage Operations Client Services at BNP Paribas, said the solution aligns with the firm's commitment to delivering best-in-class client experience, whilst Anthony Fraser, Global Head of Prime Financial Services Operations at J.P. Morgan, noted it would optimise post-trade processes with emphasis on accuracy and speed.

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🚀 Digital Asset News

LSEG Launches Blockchain Platform for Private Funds

LSEG has launched its Digital Markets Infrastructure platform for private funds, marking its entry into blockchain-powered financial market infrastructure. The company announced it has facilitated its first transaction on the platform, with MembersCap successfully executing a primary fundraise for its MCM Fund 1, with Archax acting as nominee for a major web-3 foundation.

The DMI platform, developed in collaboration with Microsoft and built on Azure cloud infrastructure, aims to deliver scale and efficiencies across the full asset lifecycle including issuance, tokenisation, distribution, and post-trade settlement. The platform adopts an open and interoperable approach, designed to work with both distributed ledger technology and traditional finance systems while utilising LSEG's existing products including Workspace.

Private funds represent the first asset class on the platform, with expansion to additional asset classes planned. EJF Capital has been onboarded as an early adopter with a selection of their funds to be available soon. The platform will enable General Partners to interact at scale with professional investors through LSEG Workspace, providing access to previously hard-to-reach private market investment opportunities.

BitGo Adds Three Board Directors

BitGo, the digital asset infrastructure company, announced the appointment of three new directors to its board on September 15, expanding expertise across corporate finance, digital assets, and regulatory policy. Brian Brooks, Sunita Parasuraman, and Justin Evans join the board as the company strengthens its governance structure.

Brooks currently serves as Chairman and CEO of Meridian Capital Group and brings extensive regulatory experience from his tenure as Acting Comptroller of the Currency and leadership roles at Binance.US, Bitfury Group, and Coinbase. Parasuraman, who chairs the Audit Committee at IREN Limited, previously led Meta's Treasury and blockchain initiatives including the Libra/Diem digital stablecoin project. Evans, currently CFO at KiwiCo, was previously Managing Director and Co-Head of Digital Asset Investment Banking at Goldman Sachs.

The appointments position BitGo for its next growth phase as a regulated digital asset infrastructure provider, according to CEO Mike Belshe. The company, founded in 2013, provides custody, wallets, staking, trading, financing, and settlement services from regulated cold storage to thousands of institutions and millions of investors globally.

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