Depository

A depository is a place or institution where something is deposited for safekeeping or future use. The term covers both physical storage facilities and financial entities that hold assets or records on behalf of others.

In the financial sector, depositories can refer to two related concepts: depository institutions that accept deposits from the public (such as banks and savings institutions) and depository organizations that hold and track securities and other financial instruments. The latter often operate as central guardians and record-keepers for ownership, settlement, and safekeeping.

In securities markets, a depository holds securities in electronic form and maintains the records of ownership. It provides custodial services, immobilizes physical certificates where applicable, and enables book-entry transfers and delivery versus payment, helping to reduce risk and speed up settlement.

Examples include the Depository Trust Company in the United States, which operates as part of the DTCC; national depositories such as NSDL and CDSL in India; and international central securities depositories such as Clearstream and Euroclear in Europe. Similar institutions exist in many jurisdictions, reflecting national post-trade infrastructure.

Outside finance, the term can simply describe a vault, archive, or warehouse used by organizations to store valuables, documents, or other materials.