TLDR
- Standard Chartered finalized binding agreements to purchase complete ownership of Zodia Custody Limited.
- Regulatory authorities must approve the transaction before completion, with financial details remaining undisclosed.
- The custodian’s regulated asset safekeeping business will transfer to Standard Chartered’s Securities Services unit.
- Zodia Solutions will continue as an independent entity within SC Ventures, supported by multiple banking partners.
Standard Chartered finalized binding purchase agreements on Wednesday, October 21, to acquire digital asset custodian Zodia Custody. The transaction represents the next phase in transferring the custodian’s operations into the banking institution’s infrastructure. The formal signing occurred months after Zodia’s shareholders and noteholders accepted the May proposal.
Banking Institution Pursues Complete Acquisition
The financial institution, operating through Standard Chartered I H Limited, intends to acquire complete equity ownership of Zodia Custody Limited. The custodian delivers safekeeping solutions to financial organizations requiring protected storage for cryptocurrency holdings. Zodia maintains regulated operations spanning Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg.
Regulatory authorization remains outstanding, along with customary transaction prerequisites. Both organizations declined to reveal the transaction value or updated timeline for completion. Initial projections anticipated final documentation by June and deal closure by August.
Asset Safekeeping to Merge with Existing Division
Following transaction completion, the banking institution will integrate Zodia’s custody capabilities within its Securities Services division. This unit currently supports organizations managing conventional securities alongside digital holdings. In related developments, Ramp applied for a US trust bank charter to provide digital asset custody.
Standard Chartered emphasized that Zodia’s customer base should experience uninterrupted service delivery. The combined entity aims to assist organizations requiring cryptocurrency custody across multiple international financial hubs. The strategy enables clients to obtain both traditional and digital asset services through the bank’s existing infrastructure.
Software Platform Continues as Independent Unit
Zodia’s technology platform and consulting capabilities will transition to Zodia Solutions, functioning as a distinct organization within SC Ventures. Standard Chartered will number among its clientele. The software division will deliver technological tools and expertise to financial institutions building cryptocurrency offerings. Investment partners comprise Northern Trust, NAB Ventures, SBI Ventures and Emirates NBD.
Craig Perrin assumes leadership of Zodia Solutions, whereas Richard Clark oversees Zodia Custody. Clark accepted the position in September following Julian Sawyer’s departure from the executive leadership role. Meanwhile, Cross River Bank integrated Ripple’s RLUSD stablecoin into its payments system.
Standard Chartered has outlined cryptocurrency custody capabilities for Singapore, encompassing support for designated cryptocurrencies, stablecoins and tokenized instruments. In parallel activity, JPMorgan launched JPM Coin on Ethereum for authorized institutional participants on October 19. Zodia obtained a Luxembourg payment institution license in June, enabling custody and transfer services for regulated stablecoins throughout the European Union.
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