SC Ventures, the innovation and ventures unit of Standard Chartered, and Northern Trust have entered into an agreement to launch Zodia Custody, a custody solution for cryptocurrencies.
Zodia is designed to enable institutions to invest in the emerging cryptocurrency assets that are changing how financial markets operate including transaction and settlement activities.
Under the agreement, which is subject to registration with the UK Financial Conduct Authority (FCA), all applicable regulatory filings and customary closing conditions, Zodia is expected to begin operations in London in 2021.
Zodia combines the traditional custody principles and expertise of a bank with the agility of a fintech company to provide an infrastructure that meets the high standards and expectations of institutional investors, explained Standard Chartered.
At launch, pending regulatory approval, Zodia will provide custody services for the most-traded cryptocurrency assets: Bitcoin, Ethereum, followed by XRP, Litecoin, and Bitcoin Cash.
According to Standard Charters, these assets represent the majority of client demand and activity, accounting for approximately 80 per of the total assets (equivalent to $395 billion) traded on the top cryptocurrency exchanges,
Maxime De Guillebon, CEO of Zodia, said: “Zodia was established to address the need for a cryptocurrency custodian that truly understands custody. We combine the risk management, compliance, governance and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies.”
Guillebon continued: “By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability.”
Alex Manson of SC Ventures, said: “The launch of Zodia demonstrates our commitment to rewiring the DNA in banking. Drawing on Standard Chartered’s heritage of providing custody services to institutional clients for 160 years, Zodia’s mission is to be a ‘force for good’ by lifting industry standards for digital assets in a sustainable, safe and responsible way.”
Pete Cherecwich, president, corporate and institutional services, Northern Trust, commented: “The introduction of digital custody backed by the know-how and experience of global banks is a breakthrough in the evolution and support of institutional cryptocurrency markets.”
“Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments,” he added.
