Future custodian seen as “platform, partner, pioneer”
The peak body for custodial services providers, the Australian Custodial Services Association (ACSA) today launched a forward-looking white paper setting out the changing role - and future expectations - of custodians within the financial services ecosystem.
The release of the paper - The New Custodian: Platform, Pioneer, Partner - coincides with the 30th anniversary of ACSA’s founding in 1995.
Informed by senior leaders of ACSA member organisations including BNP Paribas, Citi, Clearstream, HSBC, J.P. Morgan, Northern Trust and State Street, the paper charts the transformation of Australia’s custody and investment servicing industry in recent decades and a bold future vision for the industry.
Among highlights from the paper:
Australian custodians oversaw A$5.6 trillion in assets under custody and A$6.6 trillion under administration as at June 2025, operating across more than 100 markets and processing over 12.5 million trades annually.
Custodians have evolved from back-office operators to indispensable strategic partners, and have become deeply embedded in clients’ operating models and front-office decision making.
Clients are demanding far broader services – from middle-office outsourcing and liquidity management to advanced data analytics, AI-driven insights and private markets administration.
The industry is leading innovation driven by digital assets, tokenisation, distributed ledger technology (DLT), Artificial intelligence (AI) and the explosive growth of alternate and private assets.
By 2030, up to 10% of global market turnover is expected to involve digital assets and tokenised securities, with custodians playing a pivotal role in building safe, scalable infrastructure.
The traditional term “custodian” is becoming outdated; many providers now describe themselves as “investment servicing platforms” or “asset servicing and markets partners”, reflecting a blurring of lines between client and provider teams.
ACSA Chair Sally Surgeon said: “Over the past three decades, custodians have become the trusted backbone of Australia’s world-class superannuation and investment ecosystem. As we look to the future, our members are not just adapting to change – they are pioneering the platforms, partnerships and innovations that will define the next era of investment services.”
ACSA CEO David Travers added: “Technology, data and client expectations are moving at unprecedented speed. This paper makes clear that the custodians of tomorrow will deliver real-time insights, seamless digital experiences and leadership in emerging asset classes – all while safeguarding assets and maintaining the resilience that regulators and clients rightly demand.
“The Australian custodial services industry has proved highly adaptable over the last 30 years and is well placed. The combination of technological advancement, industry collaboration), and a focus on client outcomes will help ensure Australian custodians remain global leaders in a rapidly digitising financial landscape,” he said.
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