Core Insights - The financial industry is transitioning from traditional custody, execution, and settlement models to custody-native settlement, with institutions now focusing on which architectural model best fits their operational needs [1][32] Market Developments - Tokenized US Treasuries reached $9.11 billion in November 2025, a significant increase from approximately $1 billion in January 2024, with BlackRock's BUIDL fund holding $2.5 billion across eight blockchains [2][21] - Deutsche Börse Group launched AnchorNote, a custody-native pledging solution, allowing institutional clients to trade across exchanges while keeping assets in regulated custody, marking a significant shift in the market [3][31] - Major acquisitions in the market include Coinbase's acquisition of Deribit for $2.9 billion and Ripple's acquisition of Hidden Road for $1.25 billion, indicating a trend towards vertical integration in the crypto space [4][27] Regulatory Changes - The implementation of MiCA in December 2024 established a comprehensive regulatory framework in Europe, requiring asset segregation and creating a clearer pathway for institutional participation [5][23] - In the US, the SEC rescinded SAB 121 in January 2025, allowing national banks to provide crypto custody without prior approval, further facilitating institutional engagement [5][25] Infrastructure and Technology - Off-exchange settlement infrastructure is emerging to allow assets to remain in custody while facilitating trading across multiple venues, addressing the operational challenges of pre-funding [6][7] - Three primary models for custody-native settlement have emerged: Copper ClearLoop, Fireblocks Off Exchange, and BitGo Go Network, each with distinct advantages and trade-offs [8][32] - Deutsche Börse's AnchorNote utilizes neutral middleware to connect custodians and exchanges, allowing for efficient trading without the need for proprietary custody solutions [15][32] Market Trends and Projections - The institutional crypto custody market is projected to grow from $3.2 billion in 2024 to $27.8 billion by 2033, reflecting a compound annual growth rate (CAGR) of 26.7% [28] - The broader real-world asset (RWA) market, including tokenized Treasuries, is expected to expand significantly, with projections of reaching $2 trillion to $4 trillion by 2030 [22]