South Dakota’s trust assets have seen a significant increase, rebounding from a slight dip reported last year due to a decrease in the value of digital assets.
This rebound has been attributed to the recovery of digital asset values, particularly cryptocurrency.
Brett Afdahl, secretary of the Division of Banking, highlighted the volatility in state trust assets driven by cryptocurrency, noting a significant drop at the end of the fourth quarter of 2022 followed by a strong recovery.
South Dakota’s trust laws, known for their favorable nature, have contributed to the state becoming a premier trust jurisdiction globally.
The number of trust companies in South Dakota increased from 115 to 118 in 2023, with total assets growing by nearly $100 billion, from $590 billion at the end of 2022 to about $680 billion at the end of 2023.