Standard Chartered has announced it has entered into definitive agreements to acquire Zodia Custody.
Subject to regulatory approvals and customary closing conditions, Standard Chartered I H Limited will acquire 100 per cent of Zodia Custody Limited, the parent company of Zodia Custody’s regulated operating entities in Singapore, Hong Kong, Australia, the United Arab Emirates, and Luxembourg.
Post completion, Zodia Custody’s regulated digital asset custody business will be integrated into Standard Chartered’s existing digital asset custody activities within Securities Services.
According to Standard Chartered, the move will also consolidate its digital asset custody business, as Zodia Custody will separate its digital asset software and professional services business and transfer assets relating to that business to Zodia Solutions — an independent entity to be established under Standard Chartered Ventures — as part of the transaction.
The firms say Zodia Solutions will continue to provide bank-grade infrastructure to financial institutions, including Standard Chartered, as they launch and scale digital asset services.
Zodia Solutions will be supported by a number of bank investors including NAB Ventures, Northern Trust, SBI Ventures Asset, Q Studio Restricted, Emirates NBD Bank, Zodia Investments, and Zodia Holdings.
Ying Ying Tan, global head of Securities Services and digital assets at Standard Chartered, says: “The acquisition of Zodia Custody further deepens our digital asset custody portfolio and reinforces our position as a leading provider of digital asset services globally.
“This is in line with our commitment to provide our clients with access to institutional-grade custody supported by the depth, breadth, and global connectivity of an international cross-border bank”
Richard Clark, CEO of Zodia Custody, comments: “As institutional adoption of digital assets accelerates, custody is increasingly becoming part of the global banking landscape.”
Clark continues: “Bringing that expertise together with Standard Chartered’s global reach and established banking platform will strengthen its digital asset custody offering and provide institutions with greater access to trusted, regulated custody services worldwide”
The firms say they do not anticipate any disruption to clients as a result of the transaction, and existing Zodia Custody clients will continue to be serviced as usual.
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