World’s Largest Banks Will Custody Crypto in 2025, Predicts $12 Trillion Forecast

Analysts project that by 2025, the four largest global banks will offer cryptocurrency custody services. According to Galaxy Research, the Office of the Comptroller of the Currency (OCC) is expected to create a regulatory framework enabling BNY Mellon, State Street, JPMorgan Chase, and Citi—collectively managing over $12 trillion in assets—to provide digital asset services.

This development would mark near-total acceptance of cryptocurrency as a legitimate asset class in traditional finance. Even a 1% capital allocation from these institutions could lead to a significantly higher crypto market capitalization. Galaxy predicts that such institutional momentum may soon push nation-states to follow suit.

1-2% Allocation Gains Traction

BlackRock recently advised investors to treat Bitcoin like Apple or Amazon, recommending a 1-2% allocation. While no major firms have acted on this advice yet, Galaxy Research expects a shift in 2025. Analysts predict at least one top wealth management platform will recommend a 2% or higher Bitcoin allocation next year.

Nation-State Adoption on the Horizon

Corporate adoption may pave the way for nation-state participation. Speculation about the US acquiring Bitcoin has gained attention, with some proponents encouraging Donald Trump to advocate for a strategic Bitcoin reserve. However, Galaxy Research believes unaligned nations or those with large sovereign wealth funds could lead the charge, driven by geopolitical competition or adversarial positioning toward the US.

Ethereum’s Resurgence Predicted

While Bitcoin continues to dominate, Ethereum is poised for a strong comeback in 2025. Galaxy analysts foresee the ETH/BTC ratio dropping below 0.03 before recovering to above 0.06 by year-end, aided by anticipated regulatory changes. These shifts could reignite investor interest in Ethereum, particularly in decentralized finance (DeFi) applications, which may see unique support under evolving regulations.

Current Market Snapshot

Bitcoin has dipped 1.8% in the past 24 hours to $94,170, while Ethereum is down 0.6% at $3,330.

BitGalactic’s Take
BitGalactic views this forecast as a signal of maturity for the crypto sector. Institutional adoption by the world’s largest banks could be a game-changer, bridging traditional finance and digital assets. However, the focus on unaligned nations acquiring Bitcoin suggests a geopolitical dimension to crypto adoption that could accelerate its integration into global financial systems. Ethereum’s predicted rebound underscores the resilience of innovation within the space, particularly as regulatory clarity improves. This convergence of institutional and nation-state interest hints at a transformative decade for digital assets.