Who will replace Jamie Dimon?

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Good morning from Global Custody Pro! Each week, we break down the most important developments in global custody, clearing, payments, and digital assets—so you don’t have to. Let’s dive into this week’s top stories.

This week global custodians Citi, JPMorgan Chase and BNY reported Q4 earnings and we break out their Securities Services segment data and key performance measures. Who will replace Jamie Dimon is still very much an open question with leadership changes at the bank taking out a potential successor, and he won’t be US Secretary of the Treasury anytime soon. Investors and stakeholders will be watching to see what succession planning looks like for one of the world’s biggest banks.

PS: reply to this email if there’s a story you think we’ve missed.

🌏 Global Custody News

• Citi reported Q4 2024 earnings with Securities Services revenue of US$1.23 billion up 15% year-on-year. Assets under custody and/or administration grew 8% YoY to US$25 trillion. Average deposits related to Securities Services grew 6% YoY to US$135 billion. Under CEO Jane Fraser, the bank is undergoing significant transformation at high cost with US$14.7 billion in technology and transformation spend.

• JPMorgan Chase reported Q4 2024 earnings with Securities Services revenue of US$1.3bn up 10% year-on-year driven by fee growth on higher client activity and market levels, as well as higher deposit balances. Assets under Custody (AuC) reached US$35.3 trillion up almost 9% year-on-year. Overall the bank reported record full year net income of US$58.6 billion and closed the year out with risk-weighted assets of US$1.8 trillion and a CET1 capital ratio of 15.7%.

• JPMorgan Chase also announced significant leadership changes, with Daniel Pinto set to retire at the end of 2026, stepping down as President and COO on June 30, 2025, and Jennifer Piepszak assuming the COO role immediately. In related moves, Doug Petno becomes Co-CEO of the Commercial & Investment Bank, John Simmons is named Co-head of Global Banking, and Mary Erdoes and Marianne Lake continue in their roles as the bank reshapes its top executive lineup. The race to replace Jamie Dimon eventually, at some point in the future, is still on. It’s unclear who will replace the veteran banker.

• BNY reported Q4 2024 earnings with their Securities Services segment reporting revenue of US$2.32 billion for the quarter up 7% year-on-year. Assets under custody and/or administration (AuC/A) grew 10% YoY to US$37.7 trillion in the Securities Services segment and AuC/A of US$14.1 trillion in the Market and Wealth segment which is why BNY reports overall AuC/A as US$52.1 trillion overall up 9% YoY.

• Global advisory firm and proxy advisor Sodali & Co, formerly Morrow Sodali, has appointed Andrew Benett as its new CEO, effective immediately. Benett brings 30 years of experience from Havas, Bloomberg Media, Harte Hanks, and PwC, replacing Alvise Recchi who stepped down last September. The firm was recently named as the #1 Proxy Advisory Firm for 2024 by Diligent.

• UniCredit plans to internalize back-office activities for securities services in Italy and Germany, creating over 200 new jobs, including more than 140 in Germany and 60 in Italy. The move streamlines operations under a standardized platform and aims to provide a more secure, flexible, and cost-efficient foundation for delivering custody services.

• Japan Securities Clearing Corporation (JSCC) has added U.S. dollar cash to eligible collateral in its IRS Clearing Service, marking a significant milestone in meeting global calls for safe custody and efficient collateral management. The move leverages a repo transaction structure co-developed by State Street and the Fixed Income Clearing Corporation, aligning with upcoming U.S. Treasury repo clearing requirements set by the SEC for June 2026.

• Clarus published on their blog that analyses CCP data that the cleared FX market climbed to a record US$18 trillion in notional cleared in 2024, a 33% year-on-year jump, with OTC FX options surging 81% to US$2.4 trillion. While NDFs dominate at 85% of cleared volumes, the market focus is increasingly shifting from FX futures to NDFs and options, particularly in pairs like EURUSD, AUD, JPY, and GBP. 

• Hong Kong Exchanges and Clearing Limited (HKEX) has welcomed a joint decision by the Securities and Futures Commission, the Hong Kong Monetary Authority, and the People's Bank of China to allow international investors to use China Government Bonds (CGB) and Policy Bank Bonds held through Bond Connect as margin collateral for all OTC derivative transactions cleared by OTC Clear. Effective immediately for Northbound Swap Connect and expanding to other derivatives by Q1 2025, OTC Clear will collaborate with regulatory bodies to implement the changes. This move is expected to enhance the utility of RMB-denominated assets, promoting the internationalisation of the Chinese yuan. As a result, the broader acceptance of these bonds could increase liquidity and attract more global investors to the RMB market, potentially strengthening China's financial influence internationally.

• The Financial Conduct Authority (FCA) has imposed a £288,962.53 fine on Arian Financial LLP for inadequate systems and controls to prevent financial crime, marking the seventh FCA case linked to cum-ex trading and withholding tax schemes. Arian facilitated over-the-counter equity trades worth approximately £37 billion and £15 billion in Danish and Belgian equities for Solo Group clients, earning commissions of around £547,000. These circular trades were suspected of enabling fraudulent withholding tax reclaims, contributing to a broader crackdown that has seen FCA fines exceed £22 million related to such illicit activities.

• Securities services industry group ISSA has welcomed Sumitomo Mitsui Trust Bank (U.S.A.) Limited (SMTBUSA) as a new member, noting its extensive global custody services covering roughly 90 markets and bilingual support. The New Jersey-based subsidiary of one of Japan's major trust banks also provides securities lending across US and non-US fixed income and equities in over 20 major markets worldwide.

🚀 Digital Asset News

• QCP Capital has executed the first-ever derivatives trade backed by BUIDL—a tokenized real-world asset from the BlackRock USD Institutional Digital Liquidity Fund—allowing Securitize Credit to boost yield from 4.25% to 10.78% through a BTC BASIS trade and up to 14.38% with options strategies. As the designated market maker for BUIDL, QCP is spearheading a new wave of on-chain finance, positioning tokenized treasuries as a higher-yield alternative to stablecoins for institutional collateral needs. By integrating regulated tokenized assets that retain yield, QCP signals a shift in institutional finance, suggesting that on-chain treasuries could replace stablecoins as the preferred collateral for advanced trading and investment strategies.

• Standard Chartered has secured a licence in Luxembourg to provide digital asset custody services across the European Union (EU), leveraging the Markets in Crypto Assets (MiCA) Regulation. The Luxembourg entity will serve as a key regulatory entry point, complementing the bank’s global digital asset strategy that has already seen it launch custody services in the UAE. The bank has appointed Laurent Marochini, formerly Head of Innovation at Société Générale, as CEO of the Luxembourg operation. This expansion underscores how mainstream financial institutions are increasingly embracing digital assets under evolving EU regulations, signaling growing institutional confidence in crypto’s role within traditional finance.

• Circle released its 2025 State of the USDC Economy report, citing a 78% jump in USDC’s circulation, more than $20 trillion in total lifetime transaction volume, and greater regulatory clarity worldwide, including MiCA compliance in the EU and new Canadian rules. By bridging fiat and blockchain across 180+ countries, USDC has become a leading on-ramp for real-time, low-cost global transactions, now reaching over 500 million end-users through digital wallets and apps. The rapid expansion of USDC underscores a broader shift toward stablecoins as an open, programmable financial infrastructure, offering faster, cheaper transactions and broader inclusion across traditional and digital finance. (Full PDF Report)

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