Standard Chartered Acquires Zodia Custody to Expand Institutional Digital Asset Services

Standard Chartered has officially signed an agreement to acquire Zodia Custody in full, bringing its institutional cryptocurrency custody operations under direct bank ownership.

The London-based financial institution announced on October 21 that its subsidiary, Standard Chartered I H Limited, will acquire a 100% stake in Zodia Custody, encompassing its regulated operations across Singapore, Hong Kong, Australia, the United Arab Emirates, and Luxembourg.

This definitive agreement advances a preliminary takeover proposal accepted by Zodia’s shareholders and noteholders in May, moving the transaction closer to completion pending necessary regulatory approvals.

Under the terms of the deal, Standard Chartered plans to integrate Zodia’s custody operations directly into its global Securities Services division. This move adds institutional-grade cryptocurrency safekeeping to the bank’s existing portfolio of traditional securities and digital asset solutions.

This consolidation will enable Standard Chartered to offer institutional investors a fully unified platform, creating new revenue streams through custody, settlement, and allied services as traditional banks and asset managers deepen their exposure to digital assets.

Ying Ying Tan, Global Head of Securities Services and Digital Assets at Standard Chartered, stated that the acquisition will significantly strengthen the bank’s custody capabilities and expand its global service offerings to institutional clients.

The acquisition marks the latest milestone in a series of strategic investments by Standard Chartered aimed at rapidly expanding its digital asset footprint.

Earlier this month, the bank launched custody services for Ripple’s RLUSD stablecoin, alongside plans to integrate the asset into collateral arrangements with LMAX Group.

In addition, the bank has expanded Bitcoin and Ethereum trading for institutional clients in the UAE and announced plans to offer custody services for selected cryptocurrencies, stablecoins, and tokenized real-world assets in Singapore.

These strategic developments will allow Standard Chartered to combine trading, custody, and collateral management within its existing banking relationships, potentially reducing institutional clients’ reliance on multiple third-party providers.

Zodia restructuring opens another institutional revenue opportunity

In addition to bringing custody operations under direct control, Standard Chartered is spinning off Zodia’s software and professional services division into a separate entity known as Zodia Solutions.

This independent business, established under the bank’s venture capital arm SC Ventures, will specialize in providing cutting-edge digital asset infrastructure to financial institutions looking to launch or scale blockchain-based financial services.

The new entity will see investment from major players including Northern Trust, NAB Ventures, SBI Ventures, and Emirates NBD, alongside other financial institutions, while Standard Chartered will remain a key customer.

This dual structure provides Standard Chartered with exposure to a standalone technology business serving the financial sector, while consolidating its regulated custody operations directly within its traditional banking framework.

Craig Perrin, Chief Executive of Zodia Solutions, noted that financial institutions are increasingly transitioning from experimental digital asset projects to full-scale operations, driving significant demand for specialized infrastructure providers.

This structural separation also reflects the distinct commercial opportunities emerging as traditional financial institutions continue to scale their cryptocurrency operations.

While custody providers generate revenue by safeguarding institutional assets, infrastructure companies supply the underlying technology to banks looking to offer similar services without building their own platforms from scratch.

Standard Chartered’s broader digital asset strategy already encompasses Zodia Markets, which provides institutional trading infrastructure, and Libeara, a dedicated tokenization platform.

Together, these diversified operations give Standard Chartered comprehensive access to multiple segments of the institutional digital asset market, spanning tokenized securities, trading, custody, and advanced technology services.

Source link