Zodia Custody, an institutional cryptocurrency custody platform co-owned by Standard Chartered, is poised to enhance its global operations with a significant funding initiative. Julian Sawyer, CEO of Zodia Custody, announced plans to secure $50 million to broaden the firm’s international reach and develop new products. This move, reported by Bloomberg on November 4, underscores a strategic expansion effort supported by several prominent financial entities.
In October, Zodia began its latest funding venture in partnership with Architect Partners, a crypto-focused advisory firm. This collaboration aims to attract a wider array of investors, particularly those interested in the growing sectors of payments and tokenization. The intent is to leverage this capital injection to introduce innovative offerings that will enhance Zodia’s service portfolio and market presence.
Since its inception in 2021, Zodia has quickly ascended as a key player in the international crypto custody arena. The company operates from its headquarters in London and has expanded its footprint across major financial centers including Dublin, Luxembourg, Sydney, Hong Kong, Singapore, and Tokyo. Zodia’s commitment to compliance is evident through its multiple regulatory registrations worldwide, including with the Hong Kong Companies Registry.
Previous Funding Achievements and Stakeholder Involvement
Zodia’s financial backing has been robust. In 2023, the platform raised $36 million in a Series A funding round led by SBI Holdings, a Japanese financial conglomerate. Despite this influx of capital, Standard Chartered maintained a 90% stake in the company. Other notable investors include National Australia Bank and Northern Trust, highlighting the broad confidence in Zodia’s business model and market strategy.
As of October 2023, Zodia supported an array of 38 cryptocurrencies, ranging from Bitcoin and Ether to widely used stablecoins such as Tether’s USDt and USD Coin. The firm’s expansion into comprehensive crypto support services aligns with a broader industry trend where major financial institutions are increasingly venturing into digital asset custody. For instance, Bank of New York Mellon initiated digital custody services in 2022, and other significant market players like Komainu and State Street have also made notable entries into the crypto custody and tokenization sectors.
Zodia’s growth occurs amidst a dynamic competitive landscape. In October, Komainu, backed by Japan’s largest investment bank Nomura Holdings, announced its plan to acquire Propine Technologies, a crypto custody business based in Singapore, signaling a strategic expansion in Asia. Similarly, the Financial Supervisory Commission in Taiwan prepared for an institutional trial of crypto custody services, reflecting a regional interest in the sector. In August, State Street partnered with Taurus, a digital asset infrastructure firm, to launch institutional custodial and tokenization services, further illustrating the global momentum towards embracing blockchain technologies in traditional financial frameworks.
Future of Institutional Crypto Services
The increasing institutional involvement in cryptocurrency services, exemplified by Zodia Custody’s expansion and funding initiatives, marks a significant shift in the financial sector’s approach to digital assets. This transition suggests a growing acknowledgment of cryptocurrency’s potential to integrate into mainstream financial services, providing a robust framework for secure, scalable, and regulated operations.
As institutions like Zodia continue to lead with innovative solutions, the landscape of financial services is set to evolve, potentially transforming how global markets interact with digital assets. The ongoing developments in regulatory frameworks and technology platforms will likely play a crucial role in shaping the future of finance, with crypto custody services at the forefront of this transformative wave.
