2026 Predictions: Sub custody and SaaS – 2026 is the year buy beats build

This is an excerpt from our latest report: Zodia Custody 2026 predictions. Download the full report now to find out what next year holds for institutional digital asset custody.

Why now?

The build-or-buy debate that has defined digital-asset adoption is reaching its conclusion. Banks and financial institutions are realising that replicating industry-leading custody technology in-house is not efficient or scalable.

Regulatory deadlines are accelerating decisions

New frameworks – including MiCA in Europe, Monetary Authority of Singapore (MAS)’s Digital Payment Token (DPT) licensing in Singapore, and Hong Kong’s Virtual Asset (VA) regime – have introduced clear expectations for segregation, governance, and operational resilience. These requirements are driving institutions to adopt ready-made, regulator-aligned platforms rather than building bespoke systems that take years to roll out.

Pilots are maturing into production

Proofs of concept from 2024–25 are now graduating into full operational rollouts, often spanning multiple jurisdictions. The lesson from early adopters: speed, compliance, and interoperability matter more than proprietary control.

The rise of Regulation-as-a-Service

Just as banks once outsourced cloud infrastructure, they are now turning to “Regulation-as-a-Service” – providers that bake in ready-made solutions for custody, cyber security, financial crime monitoring, and audit readiness, removing the burden on swift Go To Market plans.

Institutional impact

Launching a digital-asset business remains a significant undertaking, requiring specialist staff, 24/7 monitoring, and multi-jurisdiction compliance. The SaaS model changes the economics:

• Time-to-market: Institutions can launch custody, stablecoin, or tokenisation services in months, not years.
• Cost efficiency: Lower upfront investment and predictable OpEx, compared with multi-year internal builds.
• Regulatory assurance: Proven infrastructure drastically reduces risk of compliance failure or audit delay.
• Strategic flexibility: Institutions can start small – revenue-generating custody or stablecoin programs – then scale into full-service operations as confidence and demand grow.

This “start with custody, scale into full ops” approach is quickly becoming the industry playbook. It allows banks to generate stablecoin and tokenised-yield revenue immediately, while building out governance, staffing, and oversight at a sustainable pace.

“We’re seeing banks that once planned multi-year internal builds now start with a custody or sub custody arrangement. It lets them test client appetite, generate stablecoin-driven revenue, and validate governance before hiring large teams. The economics are compelling: lower upfront cost, faster time-to-market, and less regulatory risk.”

Deborah Algeo,
Managing Director – Singapore and Hong Kong & Managing Director Solutions

Zodia in action

Zodia’s Solutions business provides bank-aligned, white-label custody infrastructure and Go To Market advisory, helping financial institutions enter the digital-asset market safely and at speed. Our approach is simple:

• Start safe and simple: Work directly with Zodia as your third-party custodian or appoint Zodia as a sub-custodian. We manage custody for you off your balance sheet, while you prove your business case and build out your white-labelled custody business in the background.
• Launch fast, stay compliant: Use our proven custody technology and security frameworks to deploy client-ready solutions across multiple jurisdictions.
• Operate securely: Benefit from bank-aligned controls, segregation, and integrated compliance monitoring – all delivered under Zodia’s full-service umbrella. We’ve experienced first hand what it takes to run a global digital custodian.
• Scale strategically: Transition from custody-as-a-service to a fully integrated operating model when business, governance, and regulatory readiness align

By adopting white-label custody, reporting, and compliance directly into their technology stack, financial institutions can begin to generate revenue quickly and safely, while building internal operations and compliance at their own pace.

 

This is an excerpt from our latest report: Zodia Custody 2026 predictions. Download the full report now to find out what next year holds for institutional digital asset custody.