Rising Debt and Bitcoin Flows Boost Custody Stocks
The traditional finance landscape is undergoing significant changes as the U.S. Treasury leans harder on buybacks, government debt surpasses $40 trillion, and the dollar wobbles. This stress test for money and markets can lead to a rewarding period for infrastructure that supports trades, custody, and clearing.
Three stocks exposed to these trends are AS LHV Group (TLSE:LHV1T), Victory Capital Holdings (VCTR), and Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (IBSE:VAKBN). These companies fit into the Alternative Asset Infrastructure and Custody Providers theme due to their focus on investment, trading, and crypto asset services.
AS LHV Group is a digital-focused bank in Estonia with operations in the UK. It generates most of its revenue from traditional banking arms, but also has a growing presence in investment, trading, and crypto assets. The company's market cap is around €1.1 billion, making it a mid-sized regional bank.
Victory Capital Holdings is a US-based asset manager that packages investment strategies into various products, including those allocating to bitcoin and gold. This allows the company to tap into rising institutional interest in alternative assets without directly engaging in custody and trading activities.
Türkiye Vakiflar Bankasi Türk Anonim Ortakligi is a large Turkish bank with strong treasury operations and investment activities. The bank channels high inflation-driven demand for alternative stores of value into its products, such as gold trading and eurobonds.