The level of assets held in South Dakota trusts is jumping significantly.
Last year, state officials reported a slight dip in trust assets—the first since the housing crisis in 2008. The dip was driven by the decrease in the value of digital assets.
That value has since recovered.
During a banking commission meeting, Brett Afdahl, secretary of the Division of Banking, said the volatility in state trust assets is driven by cryptocurrency.
“End of fourth quarter of 2022, there was a big drop in that value. That’s come back really strong the end of last year and into this year," Afdahl said. "Overall, there’s growth. The noise—the fluctuation, there, is largely driven by the crypto assets."
South Dakota’s trust laws are favorable and have made the state a premier trust jurisdiction in the world.
The number of trust companies in South Dakota increased in 2023, from 115 to 118.
The level of assets grew by just under $100 billion—from $590 billon at the end of 2022, to about $680 billion at the end of 2023.
