A new report from Finadium finds that assets held by global triparty agents stand at US$8.87 trillion in 2023, up from US$6.15 trillion in 2021. This is a 44% increase over two years and double the assets of a decade ago.
The report, The Global Triparty Services Market in 2023: A Finadium Survey, is a due diligence inquiry into the size, scope and functioning of global triparty providers. We also asked about the continued growth of digitalization, which regulations are occupying the time of triparty agents, and the major growth trends triparty agents see in their businesses. Triparty may be the most important service in capital markets that the fewest people know about; our goal is to shine light on and demystify this sector, its business drivers and upcoming directions.
Triparty assets have benefitted from the growth of central bank balance sheets. Market participants need investment opportunities, and the collateralized transactions that triparty agents support including repo have been a first choice. The amount of government collateral held by triparty agents has increased by 79% since 2021 while corporate assets are up 16%, excluding asset-backed securities.
Triparty agents have a vested interest in the future of tokenization, digitization and digitalization, and are making efforts to develop products and services to meet market needs. A global standard for an industrial-grade Distributed Ledger Technology (DLT) platform remains a goal, while triparty agents are responding to client requests for discrete solutions across the digitization of documentation, data exchange and reporting. These projects are expected to continue.
Any financial institution looking to evaluate a triparty repo or collateral service provider should read this report, whether a new or existing client. Dealers and banks should find the report useful for defining their business relationships with triparty agents and understanding how those relationships may evolve in the future. Asset managers, securities lenders, central banks and other cash providers will gain a greater understanding of the triparty model and leading offerings, resulting in a better awareness of how their assets are managed. Asset owners and asset managers building out their cash and collateral Treasury functionality may see opportunities to leverage triparty to their advantage.
A direct link for Finadium subscribers to this report is https://finadium.com/finadium-report-desc/the-global-triparty-services-market-in-2023-a-finadium-survey/
For non-subscribers, more information is available here.