Standard Chartered is planning to merge parts of its digital asset custodian, Zodia Custody, into its broader digital assets division. The move, potentially announced this month, aims to centralize client-facing custody services within the parent bank while Zodia continues as a standalone software platform.
Zodia Custody, established in 2020 by SC Ventures (Standard Chartered's innovation arm) and Northern Trust, serves institutional investors by providing secure and compliant digital asset custody. Standard Chartered holds the largest stake in Zodia, alongside Northern Trust and SBI Holdings.
This strategic integration follows Standard Chartered's exploration of crypto prime brokerage services through SC Ventures and its work with Coinbase on institutional crypto offerings. The digital asset custody market is projected for significant growth, expected to exceed $7 trillion by 2035, driven by increasing institutional participation and evolving regulatory landscapes. Key players in this market include Coinbase Custody, BitGo, and Fireblocks. Many institutional investors are actively increasing their digital asset allocations, highlighting the critical role of trusted custodians in facilitating trading, lending, and tokenization.
Zodia has recently introduced innovations such as support for the AUDM stablecoin and the Zodia Switch platform, enabling direct asset swaps within its custody service. The firm has also explored credit facilities backed by tokenized assets.