- An important step in Standard Chartered’s digital asset strategy will be the acquisition of Zodia Custody’s cryptocurrency division.
- In addition to establishing Zodia Solutions as a separate technology provider under SC Ventures, the move will incorporate Zodia’s cryptocurrency custody activities within Standard Chartered’s infrastructure.
- The purchase demonstrates the increasing need among institutions for safe, bank-grade cryptocurrency custody services for assets like Ethereum and Bitcoin.
What Does Standard Chartered’s Zodia Custody Deal Mean for Crypto Investors? Standard Chartered has said that shareholders have approved its offer to purchase Zodia Custody’s operations.
The agreement, which was made public on Monday, would separate a stand-alone infrastructure platform for institutional clients while combining Standard Chartered’s digital asset custody activities.
Supported by a number of banking investors, including current Zodia Custody shareholders, Zodia Solutions will be founded as an independent company under SC Ventures and will offer “bank-grade infrastructure” to financial institutions, such as Standard Chartered, as they grow their digital asset services.
Standard Chartered Expands Crypto Custody Business With Zodia Integration
Standard Chartered and Northern Trust first introduced Zodia Custody in 2020 as a regulated cryptocurrency custody platform for institutional investors.
According to the bank, the deal will “drive value by unlocking revenue and cost synergies” and make it possible to provide digital asset custody clients worldwide with a more complete solution.
In the press statement, Standard Chartered’s global head of financing and securities services, Margaret Harwood-Jones, stated that the acquisition would hasten the expansion of the company’s global digital asset custody portfolio.
According to the companies, current custody clients will continue to receive services as usual, and they do not anticipate any disruptions from the deal.
A representative for Standard Chartered declined to provide any additional comment.
Will Big Banks Become The New Crypto Custody Giants?
Bloomberg revealed in April that Standard Chartered was thinking about integrating the custody division into an already-existing division in order to bring some aspects of Zodia Custody in-house, leaving Zodia to function as a software-as-a-service platform.
In the midst of a larger campaign by big banks to obtain trust bank charters and other regulatory frameworks to directly custody cryptocurrency for customers, the statement formalizes that approach.
For example, in 2022, BNY Mellon introduced its Digital Asset Custody platform in the US, allowing certain clients to hold and transfer Ether (ETH) and Bitcoin (BTC) in addition to traditional assets on the same platform.
Morgan Stanley submitted an application for a US de novo national trust bank charter in February 2026. Under a structure governed by banks, the charter would permit it to hold specific digital assets for customers.
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