South Dakota Banking officials expect trust assets held in the state to take a significant jump this year.
In 2022, the value of assets held in South Dakota trusts dipped for the first time since the 2008 financial crisis. That dip was driven by the value of cryptocurrency.
In 2023, the value rebounded by $76 billion, due in large part to the returning value of cryptocurrencies.
Bret Afdahl, director of the Division of Banking, told the state banking commission on Wednesday that assets across the board will drive 2024 trust growth.
“Markets are pretty strong. Bitcoin, in particular, is up significantly over the last six months. And then, just growth, from some of these newer companies," Afdahl said. "So, we won’t know that until—we won’t have those numbers finalized until March, but I’m expecting it to jump again.”
State banking officials typically present the year-end asset numbers during the spring banking commission meeting.
South Dakota has one of the most favorable jurisdictions in the world for people to place their trust assets.
As of 2023, there are $680 billion dollars’ worth of assets held in the state.
