Global Custody Pro - 20 June 2025

LSEG, WorldCheck, ISDA, Stablecoins and more

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Global Custody Pro
June 19, 2025 • Reading Time: 7 minutes

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📰 Welcome to the Newsletter

Welcome to Global Custody Pro! I'm Brennan McDonald, Managing Editor. I write about the global custody industry after 12+ years in financial services, including working at a global custodian. An AI voice reads the audio version of this newsletter. Have feedback? Just reply to this email or connect with us on LinkedIn.

📠 Editor’s Comment

With the news that DTC surpassed $100 trillion in assets, I thought this quote on the potential size of the stablecoin market was funny - digital assets are still tiny compared to broader capital markets.

“I think that $2 trillion is a very, very reasonable number, and I could see it greatly exceeding that.”

US Treasury Secretary Scott Bessent speaking on the potential size of the stablecoin market

Table of Contents

🌏 Global Custody News

DTCC's depository DTC hits $100T in assets under custody

  • Driving the news: The Depository Trust Company (DTC), DTCC's central securities depository subsidiary, has surpassed $100.3 trillion in assets under custody, a 37% increase from $73.5 trillion in 2020. The growth was supported by a 49% rise in equities to $74.1 trillion and a 100% increase in Exchange Traded Funds (ETFs) to $11 trillion over the five years.

  • Why it matters: The milestone is a testament to the trust the global financial industry places in DTCC's infrastructure for the safekeeping and asset servicing U.S. securities. For global custodians and brokers, DTC's scale underpins its function as a critical link in the post-trade lifecycle. It is designed to reduce market risk and ensure timely, accurate settlement for over 1.44 million securities issues.

  • On the Radar: DTCC executives state the organisation will focus on pioneering new digital asset solutions as the next evolution of market structure. Frank La Salla, DTCC President and CEO, confirmed the company's commitment to "driving initiatives that unlock new value" as the industry enters an era of digital transformation alongside continued growth in traditional markets.

ISDA Questions ES ESMA's Revised Clearing Thresholds

  • Driving the news: ISDA has provided feedback to the European Securities and Markets Authority (ESMA) consultation on draft regulatory technical standards amending the clearing thresholds (CT) under EMIR 3, Article 4a(4) and 10(4)(b).

  • Impact Zone: ISDA expresses concern that the data provided by ESMA does not fully ascertain the impact of the revised thresholds and the interaction with the active account requirements (AAR). They argue that the proposed unclear thresholds, while aiming to capture a similar population, could bring more financial counterparties (FCs) under the clearing obligation, and the aggregate thresholds at current levels may not align with their backstop purpose.

  • On the Radar: ISDA proposes a tailored implementation approach for the new regime, allowing non-financial counterparties (NFCs) to adopt the simplified methodology sooner to reduce the burden while providing other firms with appropriate transition time. They also recommend clarifying that counterparties should not be required to obtain new representations from clients on their status due to the new RTS.

LSEG Risk Intelligence Drives Growth Amidst Evolving Financial Crime Landscape

  • Driving the news: Speaking on a webinar, David Wilson, Group Head of Risk Intelligence at LSEG, outlined the division's strategic priorities. These focus on accelerating growth through cloud-enabled solutions, increased investment in AI and automation, and significantly expanding its customer footprint beyond traditional financial services. This strategy leverages the division's established heritage in risk data and technology.

  • Impact Zone: The risk intelligence market is rapidly growing due to several macro trends. Escalating geopolitical tensions complicate sanctions, and the expansion of the global regulatory scope is increasing the number of firms subject to AML and KYC regulations. Furthermore, the rise of digital payments is driving a surge in payment fraud, including investment scams and business invoice redirection, necessitating strong defences.

  • On the Radar: Risk Intelligence is enhancing its core WorldCheck business, celebrating its 25th anniversary this year, by shifting to automated data collection and improving distribution for quicker sanction updates. The division is integrating its product suite (identity, risk, and fraud capabilities) to provide comprehensive solutions, addressing a broader range of customer issues in e-commerce, healthcare, and the public sector.

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🚀 Digital Asset News

US Senate Passes GENIUS Act for Stablecoins

  • Driving the news: The U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on June 17, 2025, with a 68-30 vote. The passage establishes the first federal-level framework for regulating U.S. dollar-pegged payment stablecoins.

  • The big picture: The legislation aims to enhance consumer protection by defining who can issue digital dollars and under what rules. Permitted issuers are restricted to subsidiaries of insured depository institutions or federally/state-qualified nonbanks, which must maintain one-to-one reserves with cash or similar liquid assets and publicly disclose reserve details monthly.

  • On the Radar: A key provision of the now-passed bill clarifies that permitted payment stablecoins are not considered securities. Issuers are, however, subject to the Bank Secrecy Act for anti-money laundering purposes. The framework also creates a pathway for foreign stablecoin providers to operate in the U.S., pending a Treasury determination of comparable home-country regulation.

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