This week the Basel Committee on Banking Supervision published Basel III monitoring statistics for December 2023, including crypto-asset exposures. Given this was before the launch of US Bitcoin ETFs, the data is a little stale. However, they already show significant growth in American banks providing crypto services to clients. The statistics repeat the patterns of the previous period.
In particular, the Americas are almost entirely absent from the crypto custody space, largely because of the SEC’s SAB 121 accounting rule, which makes it prohibitive for banks to provide custody. That’s already relaxing and will likely be dropped altogether by the incoming Trump administration. In the second half of 2023, assets under custody in Europe grew by 49% to €5.5 billion ($5.8bn) compared to the first half. At a global level, 94% of custody was for spot crypto rather than tokenized assets or ETPs.
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