SC acquires Zodia Custody to grow digital asset operations

By Aarav Garg

Standard Chartered is moving to consolidate its digital asset operations after agreeing to acquire the custody business of Zodia Custody, subject to regulatory approvals and customary closing conditions.

The transaction will integrate Zodia Custody’s regulated digital asset custody activities into Standard Chartered’s existing Financing and Securities Services division, strengthening the bank’s institutional digital asset infrastructure and expanding its custody capabilities for crypto and tokenised assets.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered said, “This acquisition will accelerate the growth of Standard Chartered’s global digital assets custody portfolio and support the growth of our Financing and Securities Services business. It also 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.”

Zodia Custody was originally backed by SC Ventures and has focused on providing regulated custody services for institutional clients entering the digital asset market. Standard Chartered said combining the businesses is expected to create operational efficiencies while broadening its global offering for institutional digital asset clients.

“Digital asset custody is increasingly being delivered within banking environments. At the same time, financial institutions are increasingly seeking specialist infrastructure partners to support the launch and scale of digital asset services,” said Julian Sawyer, CEO of Zodia Custody. “We have seen strong and accelerating demand for our Solutions platform, as institutions look for trusted, bank-grade infrastructure that enables them to design, deliver and grow digital asset capabilities at scale.”

As part of the restructuring, Zodia Custody’s infrastructure platform business will be separated into a new independent entity called Zodia Solutions under SC Ventures. The new business will continue providing bank-grade digital asset infrastructure to financial institutions, including Standard Chartered, as banks and asset managers expand crypto and tokenisation services.

For FinTech and financial infrastructure providers, the deal highlights growing opportunities in institutional crypto custody, compliance technology, digital asset servicing and bank-grade blockchain infrastructure as regulated financial institutions deepen their involvement in digital assets.