In the dynamic and vast world of the $7.5 trillion-a-day currency trading market, a keen glimpse at Apple Inc.’s balance sheet unveils a profound shift in recent years.

The technology behemoth holds a substantial $135 billion in foreign exchange derivatives, strategically employing them to hedge against currency fluctuations across diverse markets. Notably, Alphabet Inc. follows suit with about $60 billion in similar contracts.

These impressive figures dwarf the combined assets managed by the world’s currency-focused hedge funds, which stand at $78 billion.

This disparity underscores a paradigm shift, with central Wall Street banks increasingly directing their currency traders towards servicing the world’s largest corporations, seeking more stable and recurring fees.

This transformation can be viewed as the “forex” world transitioning from high-energy, exuberant traders to the new age of composed and articulate corporate bankers, establishing crucial global connections with treasurers and finance chiefs.

These bankers have proven instrumental, with companies becoming the linchpin of currency divisions, offering consistent business and enhancing profit margins.

The past five years have witnessed a notable surge of approximately 30% in revenue from corporate currency business across the world’s five largest banks, a trend even more pronounced among the top 50 banks, where corporate revenue accounts for over half of the total currency revenue on average.

Angad Chhatwal, Head of Global Macro Markets at Coalition Greenwich, highlights the industry’s increasing commoditization and competitiveness.

He emphasizes the necessity for banks to discover advantageous positions amidst this transformation. A significant factor contributing to this shift is the aftermath of the global financial crisis, which prompted regulatory changes compelling lenders to curtail their currency trading offerings for the world’s largest asset managers.

The dwindling currency volatility was another pivotal force behind this transformation, which drove the market during ultra-low interest rates and quantitative easing.

This reduced volatility led to a mass exodus of investors from the market, resulting in an 82% decline in FX-focused hedge funds from their peak in 2007.

A noticeable trend is anticipated as central US banks gear up to report third-quarter earnings. Industry titans like Goldman Sachs Group Inc. and Morgan Stanley are expected to record substantial drops in revenue tied to trading fixed-income currencies and commodities products.

Conversely, Bank of America Corp. and Citigroup Inc., known for their focus on providing FX services to the world’s largest corporations, are projected to witness modest increases in such revenue.

Citigroup, in particular, has excelled in this evolving landscape, consistently securing the top spot in currency trading market share for a decade, as per Coalition Greenwich’s ranking.

Citigroup’s strategic positioning and focus on corporate currency offerings under Chief Executive Jane Fraser have fortified its standing in this new era.

Leveraging its extensive physical presence spanning over 60 countries, Citigroup establishes direct connections with corporate treasurers at US-based headquarters and their subsidiaries worldwide.

This broad network is a vital edge, enhancing touch points and reinforcing Citigroup’s position in the evolving market landscape.