Custody Duopoly Trend 2026

In asset management, the custody duopoly describes the market dominance of two global custodians, BNY Mellon and State Street, who safeguard the majority of the world’s financial assets. This concentration creates an efficient, standardized system for institutional investors, like pension funds, ensuring secure settlement. However, it also introduces systemic risk, as these firms’ immense scale means operational failures could ripple through global markets.