What to know:
- Standard Chartered plans to acquire Zodia Custody’s crypto business.
- Deal expands bank digital asset custody across new markets.
- Zodia infrastructure to remain separate under Zodia Solutions.
- Move strengthens institutional crypto custody competition globally.
Standard Chartered Plc plans to acquire Zodia Custody’s crypto custody business after shareholder and noteholder approval of its non-binding offer. The deal will strengthen its institutional digital asset strategy. Zodia’s infrastructure unit will continue separately as Zodia Solutions under a SaaS model led by Julian Sawyer, with Standard Chartered’s venture arm as the majority owner.
Standard Chartered Moves to Consolidate Zodia Custody
Standard Chartered Plc has moved forward with its plan to acquire the crypto custody business of its majority-owned subsidiary Zodia Custody Ltd.
The non-binding offer has been accepted by Zodia Custody shareholders and noteholders, according to a statement issued on Monday. The proposed deal was earlier reported by Bloomberg in April.
Zodia Custody was launched in 2021 with backing from Standard Chartered and other institutional partners. The acquisition would bring full control of the custody operations under the bank’s structure.
This step strengthens Standard Chartered’s digital asset strategy and deepens its involvement in regulated crypto services. It also reflects a broader shift among global banks toward building in-house custody capabilities for institutional clients.
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Expansion Plan for Institutional Digital Asset Services
The combined custody platform is expected to support expansion into key regulated markets, including the United Kingdom and Australia.
Margaret Harwood-Jones, global head of financing and securities services, clarified that the merger would enhance the provision of institutional quality custody services.
Standard Chartered Bank intends to serve large investors such as asset managers, pension funds, and sovereign wealth funds who require the safekeeping of their digital assets.
With the evolution of regulatory policies and increasing participation by financial institutions in the industry, there has been an increase in demand for institutional custody services.
The focus of the strategy adopted by the bank is to scale up the services offered on cryptocurrencies such as Bitcoin and Ethereum in a regulated environment.
Zodia Solutions Structure and Competitive Landscape
After completion of the transaction, the infrastructure business unit of Zodia will move forward independently as an entity named Zodia Solutions.
The newly formed unit will be a software-as-a-service company that will focus on digital asset infrastructure under the leadership of Julian Sawyer, the CEO of Zodia Custody.
Venture capital arm of Standard Chartered will be the dominant shareholder in Zodia Solutions. Negotiations are currently underway to include existing investors like Northern Trust Corp., Emirates NBD Bank PJSC, National Australia Bank Ltd., and SBI Holdings Inc.
The separation will maintain clear demarcations between custody and infrastructure services. The market for institutional crypto custody is extremely competitive, with companies like BNY Mellon, State Street, Coinbase Custody, BitGo, and Fireblocks expanding their market presence.
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