Global Custody Pro - 25 July 2025

Northern Trust, BNP Paribas, BMV, CME Group, BNY, GS and more

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Global Custody Pro
July 24, 2025 • Reading Time: 9 minutes

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Welcome to Global Custody Pro. 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

Q2 2025 AuC/A US Leaderboard

Source: Global Custody Pro

Northern Trust lifts dividend on Q2 growth

  • Driving the news: Northern Trust reported second-quarter net income of $421.3 million, a 7% increase from the prior quarter. Diluted earnings per share rose 12% sequentially to $2.13, as total trust fees grew 6% over the prior-year quarter.  

  • By the Numbers: Assets under custody/administration (AUC/A) increased 9% year-on-year to US$18.1 trillion as of 30 June 2025. Assets under management (AUM) grew 11% over the same period to US$1.7 trillion.

  • Why it matters: The company returned $485.6 million to common shareholders during the quarter and announced a 7% increase in its quarterly dividend. CEO Michael O'Grady cited four consecutive quarters of improving operating leverage as a key driver for the increased shareholder return.

BNP Paribas lifts 2025 outlook on solid Q2 results

  • Driving the news: BNP Paribas has upgraded its full-year 2025 guidance, now expecting net income to exceed €12.2 billion, following solid second-quarter operating performances that saw revenues rise 2.5% to €12.58 billion. The bank will pay an interim dividend of €2.59 per share on 30 September 2025.

  • Zoom in: The result was driven by a strong performance in the Corporate & Institutional Banking (CIB) division, where revenues grew 4.0%. This was led by a 26.8% surge in Fixed Income, Currencies, and Commodities (FICC) trading, as well as a 7.6% revenue increase in Securities Services to €787 million. The securities service business reported assets under custody of €14.88 trillion, up 14% YoY, assets under administration of €2.7 trillion and transactions of 48.4m, up 30% YoY.

  • What they're saying: "Outlook for the second half of the year is very encouraging, with expected revenue acceleration driven by Commercial & Personal Banking... Combined with operational efficiency measures, disciplined risk management, and the positive contribution from AXA IM, the Group's 2025 net income is expected to exceed €12.2bn," said CEO Jean-Laurent Bonnafé.

BMV Q2 revenue rises 10% on transactional growth

  • Driving the news: Bolsa Mexicana de Valores (BMV) reported a 10% year-on-year revenue increase to 1,107 million pesos for the second quarter of 2025. Net profit grew 4% to 400 million pesos, while EBITDA reached 633 million pesos, a 14% rise.

  • Why it matters: The growth was fuelled by more dynamic transactional businesses, a surge in cross-border transactions and custody for global securities, and a favourable exchange rate effect from the peso's 14% depreciation against the US dollar.

  • Zoom in: The Central Securities Depository, Indeval, was a standout performer, with revenue climbing 20% to 346 million pesos. This was driven by a higher number of settled operations, increased assets under custody, and a rise in cross-border transactions.

CME Group posts record Q2 revenue and volume

  • Driving the news: The CME Group reported record financial results for Q2 2025, with revenue reaching an all-time high of $1.7 billion, up 10% from the prior-year period. Adjusted earnings per share also set a record at $2.96.

  • Why it matters: The record performance was driven by a 16% year-over-year increase in average daily volume to a record 30.2 million contracts, as global clients increasingly utilised the exchange's benchmark products to manage business risks across various asset classes.

  • Zoom in: The exchange is attracting a broader user base, with the number of new retail traders increasing by 57% compared to the second quarter of 2024. This contributed to a record average daily volume for Micro contracts of 4.1 million in the quarter.

CMU enables the re-use of Bond Connect collateral in repos

  • Driving the news: Hong Kong’s Central Moneymarkets Unit (CMU) will launch an Expanded Settlement Arrangement for offshore repo transactions using Northbound Bond Connect securities as collateral, effective 25 August 2025. The service will use existing DvP settlement processes and is open to all Northbound Bond Connect investors transacting with a designated market maker.

  • Why it matters: The arrangement’s key feature is that it allows the re-use (rehypothecation) of bond collateral. Repo buyers can redeploy the securities for cash bond trading, as collateral for the HKMA's RMB Liquidity Facility, for margin at OTC Clear, or in other offshore repo transactions.

  • The big picture: This new bilateral model simplifies operations compared to the existing CMU Triparty Repo Service by using investors' existing Bond Connect accounts. Unlike the tri-party offering, collateral management is handled between the two parties, and collateral re-use is explicitly supported.

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🚀 Digital Asset News

BNY, Goldman Sachs partner to tokenise money market funds

  • Driving the news: BNY and Goldman Sachs have launched a solution to represent ownership of money market fund (MMF) shares as "mirror tokens" using Goldman's GS DAP® blockchain technology. Initial participating fund managers include BlackRock, Fidelity, and Goldman Sachs Asset Management.

  • Under the Hood: Investors subscribe to MMFs via BNY's LiquidityDirect℠ platform. An integration with BNY's Digital Assets platform then creates a tokenised record on GS DAP®, while BNY continues to maintain the official books and records for the funds.

  • Why it matters: The collaboration aims to enhance the utility and transferability of MMF shares. Goldman Sachs stated that the goal is to unlock the value of these shares as collateral and enable more seamless transfers in the future.

PNC Bank partners with Coinbase for client crypto services

  • Driving the news: PNC Bank has formed a strategic partnership with Coinbase to offer digital asset solutions to its banking clients and institutional investors. As part of the deal, PNC will also provide select banking services to Coinbase.

  • Under the Hood: The collaboration will use Coinbase's Crypto-as-a-Service (CaaS) platform to power the new offering. An initial service will allow PNC clients to buy, hold, and sell cryptocurrencies securely on PNC's platform.

  • What they're saying: "Partnering with Coinbase accelerates our ability to bring innovative, crypto financial solutions to our clients," said William S. Demchak, PNC chairman and CEO. He noted the move helps meet "growing demand for secure and streamlined access to digital assets".

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Managing Editor

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