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Custody rebooted: How the asset servicing industry must adapt for the digital future
Journal of Securities Operations & Custody,
14
(1),
42-53
(2021)
Abstract
This paper describes a vision of the securities services landscape in 2030 and beyond based on current technology and industry trends alongside Northern Trust’s own experience and innovation research. It explores the components shaping that future, such as blockchain, digital assets and decentralised finance (DeFi), and the underlying drivers of change including regulatory developments, an increasing demand for sustainability and the search for alpha. The complete, and potentially profound, nature of this transition will result in each step in the industry’s value chains being required to grow increasingly astute, agile and creative. Within this context, custodians will become a conduit for their clients to a new digital world — navigating the complexity of an evolving landscape and highlighting opportunity whilst continuing a safeguarding role. The paper explores practical steps that all industry participants will need to consider in order to competitively position themselves for this step change in the belief that, ultimately, the conclusion of this process will be a more efficient, transparent and flexible ecosystem enabling products and services that are unimaginable today.
Keywords: Digitisation; Blockchain; decentralised finance; digital assets; digital infrastructure; cryptocurrency
The full article is available to subscribers to the journal.
Author's Biography
Pete Cherecwich is an Executive Vice President and a member of Northern Trust’s Management Group in Chicago. Pete currently serves as the President of Northern Trust Asset Servicing. Northern Trust’s Asset Servicing business unit is a leading provider of asset servicing, banking and related services to institutional clients worldwide including but not limited to corporate and public pension funds, sovereign wealth funds, supranational organisations, investment management firms, foundations and endowments, healthcare organisations, insurance companies and other financial institutions. An industry veteran, Pete brings over 25 years of experience in working in a global organisation and managing extremely large and complex client relationships. Pete originally joined Northern Trust in July 2007 as Head of Institutional Product and Strategy. Prior to joining Northern Trust, Pete served in various executive and lead operational roles at State Street Bank. Pete received his MBA degree from Suffolk University in Boston, Massachusetts and his BA degree in Political Science, Legal Studies and Soviet Studies from Brandeis University in Waltham, Massachusetts. Pete currently sits on the Board at National Louis University and happily sponsors Urban Initiatives, an organisation for children in underserved communities within Chicago.
