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- Global Custody Pro - 24 September 2025
Global Custody Pro - 24 September 2025
BitGo files for IPO, Clearstream, AI Insurance risks and more
Global Custody Pro
September 23, 2025 • Reading Time: 8 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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🌏 Global Custody News
Clearstream Direct Link to Turkish Markets
Clearstream Banking S.A. and Turkish central securities depository Merkezi Kayıt Kuruluşu (MKK) announced they will establish a direct connection between their systems on September 29, facilitating settlement and custody of Turkish government debt securities. The new setup replaces the current indirect arrangement and will operate through an omnibus account structure with TEB Securities Services as account operator.
The connection represents a shift from segregated to omnibus accounts for Turkish government debt securities, though Clearstream will maintain the existing segregated account structure for Turkish equities and corporate bonds. According to Jan Willems, Head of Global Markets at Clearstream, the initiative is part of the company's strategy to improve operational excellence through direct market access and enhance asset protection for clients.
Dr. Ekrem Arıkan, CEO of MKK, described the inter-CSD connection as a significant milestone in integrating Türkiye's capital markets with the global financial system. The arrangement is expected to improve liquidity and broaden international participation in Turkish securities, with TEB Securities Services building on its 13-year partnership with Clearstream in the Turkish market.
Trade Groups Push EU Reporting Simplification
Four major financial trade associations have thrown their support behind a specific approach to simplify Europe's complex transaction reporting framework, responding to ESMA's comprehensive review aimed at reducing regulatory burden. AFME, FIA, GFXD and ISDA endorsed "Option 1a" which would clearly separate reporting obligations by instrument type - moving OTC derivatives exclusively to EMIR reporting while exchange-traded derivatives would report only under MiFIR.
The associations identified dual-sided reporting requirements, where both counterparties must submit reports, as among the top barriers preventing alignment with global standards, particularly with the United States. They also highlighted duplicative reporting of the same derivative instruments across multiple regimes and frequent regulatory changes without adequate implementation time as key cost drivers that necessitate urgent reform.
Looking ahead, the groups stressed that any simplification must include adequate implementation time and avoid simply transferring all existing fields between regimes, which would negate burden reduction benefits. They recommended establishing a permanent industry taskforce to calibrate a unified reporting template over the longer term while implementing the instrument delineation approach more immediately to achieve meaningful cost savings.
AI Exclusions Create Uninsured D&O Risks
Insurance companies are introducing sweeping artificial intelligence exclusions that could leave corporate directors and officers exposed to uninsured liabilities, according to an analysis by Hunton Andrews Kurth lawyers Geoffrey Fehling and Michael Levine, and GB&A Insurance President Evan Bundschuh. The authors note that 50-75% of companies have incorporated AI into operations while insurers are adding exclusions that purport to be "near absolute in scope."
The exclusions extend beyond direct AI usage to include third-party systems and can void coverage even when AI plays a negligible role in a claim. The authors cite examples including healthcare practitioners using AI for diagnosis, financial firms utilising AI for investment decisions, and companies employing AI-enhanced cybersecurity systems. They warn that Berkley's "absolute" AI exclusion could apply to companies that simply fail to properly disclose their AI usage to investors.
The analysis suggests organisations should immediately review their insurance policies, particularly errors and omissions, directors and officers, and cyber liability coverage. The authors note that while AI exclusions are "relatively easy to bypass" currently as they are not yet standard, insurers have begun incorporating them with more expected to follow. They recommend companies consider new AI-specific insurance products that offer affirmative coverage for AI-related risks.
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🚀 Digital Asset News
BitGo Files for NYSE IPO at $90B “Assets on Platform”
Crypto custodian BitGo Holdings has filed an S-1 registration statement with the SEC to list on the New York Stock Exchange under ticker "BTGO," with Goldman Sachs and Citigroup as lead underwriters. The filing showed revenue nearly quadrupled to $4.19 billion in the first half of 2025 from $1.12 billion a year earlier, while net income declined to $12.6 million from $30.9 million.
The Palo Alto-based company disclosed it manages $90.3 billion in digital assets as of June 30, 2025, serving 4,600 institutional clients and over one million individual users across more than 100 countries. The filing revealed heavy concentration in specific cryptocurrencies, with Bitcoin representing 48.5% and Sui accounting for 20.1% of platform assets, followed by Solana at 5.7%.
The registration statement outlined a dual-class share structure that will maintain founder control, with Class B shares held by co-founder and CEO Mike Belshe carrying 15 votes compared to one vote for Class A shares. The company stated IPO proceeds would fund technology development, potential acquisitions, and stock-based compensation while enhancing market visibility and financial flexibility.
Bakkt Adds Mike Alfred to Board
Bakkt Holdings announced the appointment of Mike Alfred to its Board of Directors as part of its strategy to build next-generation financial infrastructure. CEO Akshay Naheta said the addition brings "unparalleled expertise, a powerful network and institutional credibility" to help execute the company's growth strategy.
Alfred, who co-founded BrightScope (acquired by Strategic Insight) and Digital Assets Data (acquired by NYDIG), currently manages Alpine Fox LP, a private investment fund focused on Bitcoin and AI-related equities. He serves on multiple boards including IREN, a data centre operator for Bitcoin and AI applications.
The appointment aligns with Bakkt's strategic focus on four key areas over the next decade: digital asset trading, stablecoin payments, AI agents and Bitcoin. Founded in 2018, the company provides institutional-grade trading and onramp capabilities for sustainable, long-term involvement in digital assets.
Amber International Holding Limited, operating as Amber Premium, announced its entry into the Digital Assets Treasury sector with institutional-grade digital asset management services. The company's new platform provides consulting, trade execution, compliance support, and asset management solutions for corporations seeking to manage their digital asset holdings more effectively.
The expansion addresses a gap in the US$110 billion corporate Bitcoin market, where 179 publicly listed companies globally hold digital assets but often lack integrated infrastructure for management. According to the company, corporations currently struggle with fragmented solutions across multiple vendors, each with different compliance and security standards. Amber Premium's platform consolidates these services, offering 24/7 customer support throughout the digital asset lifecycle.
Vicky Wang, President of Amber Premium, said the DAT services bring everything "under one roof—from basic trading to complex structured products," eliminating the need for clients to coordinate between different providers. The company plans to refine its offerings based on strict compliance, technology advancement, and client value creation as it expands its institutional client base in the Web3 sector.
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