Zodia Custody, a joint venture between Standard Chartered (OTC:SCBFF), SBI Holdings, and Northern Trust (NASDAQ:NTRS), is extending its operations to Hong Kong, as part of its strategic expansion in the Asia-Pacific region. This move comes in response to the increasing institutional demand for cryptocurrencies, and follows successful launches in Singapore, Japan, and Australia.
The platform's CEO Julian Sawyer expressed that the significant demand in Hong Kong stems primarily from institutional investors. This aligns with Zodia's offering of crypto custody services. Sawyer also recognized the Hong Kong government's supportive stance on digital assets and its aspirations to establish itself as a hub for these assets, which aligns with Zodia's ambitions.
As part of its phased rollout strategy in Hong Kong, the firm will initially support a limited number of cryptocurrency assets. Zodia is presently in talks with Hong Kong’s Securities and Futures Commission and the Monetary Authority regarding regulatory approvals.
Standard Chartered had previously announced plans for an institutional crypto custodial platform in 2020. Zodia was officially launched in 2021 after securing $36 million in a Series A funding round led by SBI Holdings in April 2023. The platform currently supports 38 cryptocurrencies including Bitcoin (BTC), Ether (ETH), Tether (USDT), and USDC (USDC).
In addition to its expansion into Asia, Zodia has also made strides towards entering the EU market. The firm recently obtained a VASP registration from the Central Bank of Ireland, which serves as a precursor to future MiCA authorization. Furthermore, Zodia holds licenses in the UK and Abu Dhabi. Michael Walsh, chief of Zodia Markets Ireland, foresees significant opportunities within the EU market.
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