For decades, the financial industry has assessed the size and strength of an asset management firm through a core metric: Asset Under Custody (AUC) – The total value of assets held in custody and safekeeping on behalf of the client.
In the context of Web 3, the concept of custody expanded to include digital assets. However, as Web 4 emerges – where AI agents become the central operating actors – the structure of Asset Under Custody is facing a profound redefinition.
Web4 is not just changing how assets are owned, but how they are managed, optimized, and operated in real time.
From passive custody to smart custody infrastructure
In the traditional model, custody is a function of safeguarding and confirming ownership. Banks or financial institutions hold assets, ensuring their safety and legal compliance.
With the advent of the Web3 era, digital asset custody requires private key management mechanisms, multi-signatures, and new layers of security. However, this model remains relatively passive: assets are held and traded only when an order is placed.
Web4 raises another question: what happens when an AI agent can represent the owner to manage assets on an ongoing basis?
In a self-sustaining Internet structure, custody is no longer just about protecting assets, but has become a vital component. smart operating infrastructure, where assets are monitored, analyzed, and optimized in real time.
AI agents and the shift in Asset Undercustodial
In Web4, AI agents can:
- Monitor market fluctuations continuously.
- Portfolio rebalancing
- Asset allocation across multiple investment classes.
- Automatically execute trades according to the defined strategy.
This transforms Asset Under Custody from a static number reflecting the value of assets held into a dynamic structure, continuously optimized by an intelligent system.
In this context, competitive advantage lies not only in owning more assets, but also in the ability to build. AI Financial Engine It is possible to manage those assets more efficiently.
Web4 and the convergence of Custody, AI, and Tokenization
Web4 promotes the convergence of three elements:
The first is the tokenization of real assets (RWA). When real estate, precious metals, or bonds are tokenized, physical assets can be traded and managed in a digital environment.
Secondly, AI is used for valuation and risk management. The system can analyze market data, macroeconomic data, and user behavior to automatically adjust portfolios.
Thirdly, blockchain acts as a validation and settlement layer, ensuring transparency and integrity of transactions between automated actors.
When these three layers combine, Asset Under Custody is not just an asset held in custody, but an asset operated within a smart ecosystem.
From asset size to infrastructure capacity
In traditional asset management, the size of the AUC determined an organization's standing. However, in the Web4 era, size alone is no longer sufficient.
An organization with a large AUC but lacking AI, compute, and data infrastructure will struggle to compete with organizations capable of optimizing assets through autonomous systems.
This creates a shift from a “financial institution” to a “financial infrastructure platform.” Organizations that possess computing, data, and settlement layer infrastructure will have a long-term advantage over organizations that rely solely on brand or distribution networks.
Machine-to-Machine Economy and Self-Operating Assets
In a machine-to-machine economy, assets can automatically participate in the value chain. A simple example is that digital assets can automatically participate in staking or lending based on market conditions.
In the future, when AI agents represent individuals or organizations, Asset Under Custody could become a structure where assets are allocated, lent, insured, or restructured algorithmically without manual commands.
This increases capital efficiency, but at the same time requires higher levels of compliance standardization and AI monitoring mechanisms.
Risks and challenges
Web4 opens up the possibility of automated asset management, but it also increases systemic risk. AI-driven misjudgments can spread rapidly if many systems are tightly interconnected.
Furthermore, the question of legal liability becomes complicated: if an AI agent executes a transaction that results in a loss, who is responsible? The algorithm developer, the custodian, or the asset owner?
Therefore, the future of Asset Under Custody in Web4 depends not only on technology, but also on a transparent legal framework and auditing mechanisms.
Strategic assessment
Web4 is changing the way we understand asset custody. From a passive safeguarding function, custody is transforming into an active operational infrastructure.
In a self-sufficient Internet structure, Asset Under Custody will be evaluated not only by asset size, but also by capabilities:
- Risk management using AI
- Real-time asset operation
- Integrating tokenization and transparent settlement
- Ensuring compliance in an automation environment.
Organizations that build this infrastructure early will have an advantage in the transition phase of the digital economy. Web3 empowers asset ownership, and Web4 empowers assets with the ability to act on them.
In the age of AI, the future of Asset Under Custody is no longer about preserving value, but about intelligently and disciplinedly managing that value.
