Standard Chartered to Acquire Zodia Custody

Standard Chartered is pushing further into the digital asset space with news that its non-binding offer to acquire crypto custodia Zodia Custody has been accepted by shareholders. The bank is an existing shareholder in Zodia through its SC Ventures arm.

The deal will see Zodia Custody’s regulated custody activities integrated into the bank’s existing digital asset custody Financing and Securities Services business, thereby consolidating the Group’s digital asset custody businesses. “The move will drive value by unlocking revenue and cost synergies and enabling a more comprehensive offering to DA custodian clients globally,” the bank states.

As part of the transaction, Zodia Custody will separate its institutional digital asset infrastructure platform business and transfer all the assets related to this business to an independent entity that will be setup, Zodia Solutions, under SC Ventures. Zodia Solutions will continue to provide infrastructure to financial institutions, including Standard Chartered, supporting institutions as they launch and scale digital asset services. Zodia Solutions will be supported by a number of bank investors, including existing Zodia Custody investors, NAB, Northern Trust and SBI Holdings.

“[This deal] reflects the group’s continued focus on building an end-to-end digital assets offering and it further strengthens our position as the trusted bridge between TradFi and DeFi,” says Margaret Harwood-Jones, global head of Financing and Securities Services at Standard Chartered.

“Digital asset custody is increasingly being delivered within banking environments,” adds Julian Sawyer, CEO of Zodia Custody. “At the same time, financial institutions are increasingly seeking specialist infrastructure partners to support the launch and scale of digital asset services.”