Asia-Pacific’s custody specialists entered a new era in 2025 as the industry continued to move far beyond its traditional role of safekeeping assets.

Once judged primarily on scale, settlement efficiency and post-trade reliability, custodians are now competing on their ability to deliver digital infrastructure, real-time liquidity management, tokenized asset servicing, and increasingly sophisticated collateral solutions across fragmented regional markets.

The shift is being driven by a convergence of forces reshaping global capital markets. Persistent geopolitical volatility, higher-for-longer interest rates, accelerated settlement cycles, and the explosive growth of digital assets are forcing institutional investors to rethink how assets are held, financed, and mobilized.

At the same time, Asia-Pacific’s growing importance in global investment allocations is creating fresh demand for regional custody capabilities as asset managers diversify beyond traditional US and European exposures.

Against this backdrop, asset service providers, particularly custodian banks, are rapidly reinventing themselves as broader securities services platforms.

Central priorities

Artificial intelligence, automation and tokenization have become central strategic priorities rather than experimental side projects.

Leading custodians are embedding AI into onboarding, compliance and post-trade workflows to reduce operational friction and improve client responsiveness, while simultaneously investing in digital asset infrastructure capable of supporting tokenized securities, programmable collateral, and blockchain-based settlement models.

Tokenization, in particular, has emerged as one of the industry’s most closely watched themes.

Financial institutions across Asia are moving from pilot programmes to live deployment of tokenized real-world assets, digital collateral structures, and blockchain-enabled fund servicing.

Custodians increasingly view tokenization not as a disruptive threat but as a major commercial opportunity that could redefine the economics of securities servicing. Industry participants expect tokenized collateral management and digital settlement mechanisms to reduce settlement failures, improve liquidity mobility, and unlock new revenue streams tied to asset servicing and financing.

The race to build digital custody capabilities has intensified as regulatory frameworks across Asia gradually evolve. Hong Kong, Singapore, Japan, and South Korea are all positioning themselves as regional digital asset hubs, encouraging both global banks and specialist providers to expand their custody infrastructure.

Beyond traditional mandates

Traditional custodians are now competing alongside digital-native firms for institutional mandates tied to cryptocurrencies, tokenized funds, and real-world asset platforms.

At the same time, securities lending and collateral optimization have become important profit engines for custodians navigating margin pressure in traditional custody businesses.

Securities lending revenues in Asia-Pacific surged in 2025 amid elevated market volatility, event-driven trading, and expanding ETF activity, reinforcing the region’s growing strategic importance in global financing markets.

Clients are demanding more sophisticated liquidity solutions, flexible collateral transformation services, and cross-border financing capabilities that extend well beyond traditional custody mandates.

Sustainability is also reshaping the competitive landscape. ESG-linked escrow products, sustainable financing structures, and green collateral frameworks are increasingly embedded in transaction banking and securities services offerings as institutional investors seek closer alignment between treasury operations and sustainability objectives.

Custodians that can combine operational resilience with sustainability-linked innovation are gaining a clear competitive edge in winning mandates across the region.

In this year’s awards, the region’s leading custody specialists distinguished themselves through their ability to adapt to these structural shifts while continuing to deliver resilience, scale, and execution across increasingly complex markets.

It is in this context that The Asset announces the winners of the Best Custody Specialist Awards as part of the Asset Servicing Awards 2026. These accolades are integrated into the Triple A Sustainable Investing Awards for Institutional Investors, ETFs, and Asset Servicing Providers.

Northern Trust

Best Custody Specialist, Asset Managers

Northern Trust grabs the title of Best Custody Specialist for Asset Managers in Asia-Pacific, winning several asset manager mandates by seamlessly integrating sophisticated multi-asset class support with local expertise. Its use of advanced digital tools and commitment to the region’s regulatory evolution provide managers with the operational resilience and transparency needed to scale across diverse markets.

DBS

Best Custody Specialist, Mid-Tier Asset Managers

DBS Bank is the premier choice for mid-tier asset managers due to its bespoke digital ecosystem and deep local presence across Asia’s growth axes. By offering scalable, institutional-grade custody for both traditional and digital assets, the bank provides mid-sized firms the agility and security needed to navigate complex regional markets effectively.

Citi

Best Custody Specialist, Financial Market Infrastructure

Citi is chosen as the Best Custody Specialist for Financial Market Infrastructure in recognition of its unparalleled global network, moving trillions of dollars daily. Its “product-agnostic" infrastructure group provides essential liquidity and cross-border connectivity, supporting corporates and financial institutions by connecting money, assets, liquidity, and data through a seamless platform that helps clients manage complexity, mitigate risk, and grow with confidence.

Best Securities Lending Specialist, Brokerage

Citi, through its transformation platform, Citi Securities Lending Access (CSLA), has enabled partner banks, particularly OCBC, to access securities lending services to enhance portfolio returns, thereby expanding securities lending to retail segments.

HSBC

Best Securities Lending Specialist, Corporates

HSBC is recognized as the Best Securities Lending Specialist for Corporates for its dominant regional custody and agency lending franchise, advanced digital capabilities, and seamless cross-border execution. Its integrated securities platform delivers scalable, client-centric solutions for corporates navigating increasingly complex liquidity, collateral, and settlement requirements.

Best in Escrow Agency

HSBC wins as Asia-Pacific’s Best Escrow Agency for its strong regional network, sophisticated risk-management capabilities, and tailored transaction solutions supporting complex M&A, infrastructure, and capital markets deals. Its technology-enabled escrow platform has enhanced transparency, operational efficiency and cross-border execution for institutional clients. HSBC also garnered the highest number of votes from clients based The Asset’s client survey of service providers.

Best Transfer Agent

HSBC is recognized as Asia-Pacific’s Best Transfer Agent for its dominance in transfer agency, delivering efficient, technology-driven fund administration and investor servicing (managing records of ownership, issuing/cancelling stock certificates, etc.) and facilitating corporate actions like dividend payments across multiple jurisdictions. Its scalable platform, regulatory expertise, and strong regional coverage enables asset managers to streamline operations and enhance investor experience.

Standard Chartered

Best Custody Specialist, Insurance

Standard Chartered is the Best Custody Specialist for Insurance on the strength of its tailored capital-efficiency solutions and robust regulatory reporting. In 2025, it won a multibillion-dollar regional mandate that attests to its deep footprint across Asian markets, providing insurers with cross-border connectivity and liquidity management essential for regional expansion.

Best Custody Specialist, Africa

Standard Chartered is the Best Custody Specialist for Africa by virtue of its dominant and extensive frontier-market presence and leadership in digital asset custody. By driving regulatory reforms and providing seamless cross-border connectivity, the bank proves itself as an essential partner for global investors navigating the continent’s evolving capital markets.

Best in Escrow Agency, Highly Commended

Standard Chartered is recognized for its escrow capabilities, including the launch of its sustainable escrow and account bank solution, which has been described as a first-of-its-kind offering combining escrow risk mitigation with ESG-aligned fund deployment. The solution reflects the growing demand for sustainability-linked transaction banking in Asia-Pacific and beyond.

Please click here for the full list of winners.

To learn more about these awards please go here.

To join the in-person annual celebratory dinner in Hong Kong on June 30, 2026, please contact us at celebrate@theasset.com.