The post Banking Giants Move to Take Over Digital Asset Custody appeared on BitcoinEthereumNews.com. Fintech A noticeable power shift is unfolding in the digital asset custody market: global banks are no longer trying to sit on the sidelines. Key Takeaways: 21Shares choosing Standard Chartered signals traditional banks are now replacing crypto-native firms in custody roles. The move suggests global banks want direct control of digital-asset infrastructure rather than using subsidiaries. The trend reflects growing institutional demand for bank-grade custody instead of purely crypto-native services. The latest signal came when 21Shares chose Standard Chartered to safeguard its digital assets, a mandate that pushes one of the world’s largest banking groups deeper into the crypto infrastructure business. The significance of the deal lies not only in the services provided, but in which type of institution is providing them. Crypto-native custodians once dominated digital asset protection, while large banks either avoided the sector or relied on subsidiaries to maintain distance. Now, the direction has reversed — banks are stepping in directly, and crypto-native providers are seeing their monopoly erode. A pivot away from indirect involvement Standard Chartered quietly took a different stance this year. Instead of continuing to use subsidiaries to handle digital assets, the bank is now taking custody relationships into its own brand, beginning with 21Shares. The decision represents a major departure from 2020, when Standard Chartered co-founded Zodia Custody specifically to keep crypto activity structurally separate from its core banking operations. With 21Shares previously storing assets with Zodia, the bank’s entry into custody raises unanswered questions about whether Zodia will continue operating in parallel or be replaced over time. None of the companies involved have clarified the long-term structure, fueling speculation that large banks may gradually absorb market share from the specialist firms they helped create. Demand from institutions is changing the rules For 21Shares, the motivation is not ideological — it is commercial.… The post Banking Giants Move to Take Over Digital Asset Custody appeared on BitcoinEthereumNews.com. Fintech A noticeable power shift is unfolding in the digital asset custody market: global banks are no longer trying to sit on the sidelines. Key Takeaways: 21Shares choosing Standard Chartered signals traditional banks are now replacing crypto-native firms in custody roles. The move suggests global banks want direct control of digital-asset infrastructure rather than using subsidiaries. The trend reflects growing institutional demand for bank-grade custody instead of purely crypto-native services. The latest signal came when 21Shares chose Standard Chartered to safeguard its digital assets, a mandate that pushes one of the world’s largest banking groups deeper into the crypto infrastructure business. The significance of the deal lies not only in the services provided, but in which type of institution is providing them. Crypto-native custodians once dominated digital asset protection, while large banks either avoided the sector or relied on subsidiaries to maintain distance. Now, the direction has reversed — banks are stepping in directly, and crypto-native providers are seeing their monopoly erode. A pivot away from indirect involvement Standard Chartered quietly took a different stance this year. Instead of continuing to use subsidiaries to handle digital assets, the bank is now taking custody relationships into its own brand, beginning with 21Shares. The decision represents a major departure from 2020, when Standard Chartered co-founded Zodia Custody specifically to keep crypto activity structurally separate from its core banking operations. With 21Shares previously storing assets with Zodia, the bank’s entry into custody raises unanswered questions about whether Zodia will continue operating in parallel or be replaced over time. None of the companies involved have clarified the long-term structure, fueling speculation that large banks may gradually absorb market share from the specialist firms they helped create. Demand from institutions is changing the rules For 21Shares, the motivation is not ideological — it is commercial.…