More registered investment advisors are using multiple custodians for client assets, as measured by looking at separately managed accounts, according to new data from AdvizorPro.
RIAs using multiple custodians rose to 6,253 from the most recent Form ADV filings in 2025, compared to 5,938 with multiple custodians reported in 2024. That breaks down to about 27.2% of RIAs using two or more custodians.
“Diversification is increasing across the board,” AdvizorPro analysts wrote in a report released Tuesday. “Nearly 30% of RIAs now use two or more custodians—a defensive posture in a world of tech outages, service bottlenecks and merger uncertainty.”
So-called “dual stack setups,” in which advisors combine custodial services from firms such as Charles Schwab, Fidelity Investments and Altruist, allow them to “hedge risk while offering clients broader capabilities,” wrote the Atlanta-based data and insights firm analysts. The firm found that the two industry leaders, Schwab and Fidelity, are the most common pairing.
For its annual custodian report, AdvizorPro analyzed more than 23,000 filings regarding custodian usage for SMAs. The analysts noted that RIA usage for SMAs is generally the same as their main custodial relationships. However, RIAs will sometimes use SMAs via other providers such as Envestnet or AssetMark’s Adhesion Wealth, and therefore, may not be a primary relationship.
More RIAs signed up with custodians than dropped them: 4,025 new relationships were booked overall, while 2,329 were terminated.
AdvizorPro assessed the custodial market as stable, with Schwab keeping its dominant lead in the space. However, it also showed signs of disruption as advisors sought to reduce costs and add technological and investing capabilities.
“Schwab remains the default, but challengers like Altruist and niche players like Interactive Brokers are gaining from firms prioritizing cost control, ease of onboarding, or specialized asset classes,” the firm wrote.
According to the report, Schwab’s overall lead in the space increased by 9.6% year-over-year to 13,252 relationships. Fidelity retained its second-place status for relationships, with an increase of 5.8% to 3,733 firms. Interactive Brokers, often seen as an alternative to the big two legacy custodians, saw growth of 6.9% to 1,816 RIA relationships.
The big mover, however, was fourth-placed Altruist, which grew 111.7% to 1,179 relationships. That helped it jump up from 10th place for the period through 2024.
“Altruist’s rise underscores the industry’s shift towards digital-first custodial solutions,” AdvizorPro analysts wrote. “This growth aligns with the broader trend of RIAs seeking streamlined, tech-driven platforms to meet evolving client expectations.”
AdvizorPro noted later in the report that Altruist’s success is most often among younger and smaller firms or RIAs with client assets below $500 million.
Ascensus, the largest independent retirement and government savings provider, and Goldman Sachs also saw stronger growth than other custodians, albeit from lower bases.
Goldman, who was added as a custodian for the Dynasty Financial Partners network of RIAs earlier this year, jumped 14.6% to 220 RIA clients. Ascensus rose 44.6%, but to a base of just 94 relationships.
“The notable growth of mid-sized custodians like Ascensus and Goldman Sachs suggests a diversification in RIA preferences, potentially driven by specialized services and niche offerings,” AdvizorPro analysts wrote.