Standard Chartered has signed an agreement to acquire 100% of Zodia Custody, bringing cryptocurrency custody for institutions into the bank's direct ownership. The London-based bank said on Oct. 21 that Standard Chartered I H Limited, a subsidiary, will make the acquisition. The transaction includes regulated businesses in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. The agreement progresses a takeover proposal that Zodia's shareholders and noteholders accepted in May. Completion remains subject to regulatory approvals.
Standard Chartered will incorporate Zodia's custody operations into the bank's Securities Services division. The integration will add cryptocurrency safekeeping to the division's traditional securities and digital asset offerings. The consolidation would enable Standard Chartered to offer institutional investors a single platform. The platform could produce additional custody, settlement and other service revenue as banks and asset managers increase digital asset exposure. Standard Chartered must obtain regulatory clearance and integrate Zodia's operations before the acquisition can deliver additional institutional revenue. Ying Ying Tan, Standard Chartered's global head of Securities Services and Digital Assets, said the acquisition would broaden the bank's custody portfolio and global institutional service capabilities.
Standard Chartered has made several investments to expand the bank's digital asset business. Earlier this month, Standard Chartered launched custody services for Ripple's RLUSD stablecoin. Standard Chartered also outlined plans to incorporate RLUSD into collateral arrangements with LMAX Group. Standard Chartered has broadened institutional Bitcoin and Ethereum trading in the UAE. Standard Chartered has announced plans for Singapore custody services covering selected cryptocurrencies, stablecoins and tokenized real-world assets. These initiatives would combine trading, custody and collateral management within existing banking relationships, potentially reducing institutional clients' dependence on several providers.
Standard Chartered is separating Zodia's software and professional services division into a new company, Zodia Solutions. The independent company was established under SC Ventures, the bank's venture arm. Zodia Solutions will supply digital asset infrastructure to financial institutions planning to introduce or expand blockchain-based financial services. Investors will include Northern Trust, NAB Ventures, SBI Ventures, Emirates NBD and other financial institutions. Standard Chartered will continue as a customer. The structure gives Standard Chartered exposure to a separate financial technology business while the bank integrates regulated custody into the bank's traditional operations.
Zodia Solutions Chief Executive Craig Perrin said financial institutions were increasingly progressing from experimental digital asset projects to full-scale operations. Perrin said that transition was creating demand for specialist infrastructure providers. The separation reflects distinct commercial opportunities as traditional financial institutions expand cryptocurrency activities. Custody businesses can generate revenue from safeguarding institutional assets. Infrastructure businesses can sell technology to banks seeking to provide similar services without developing proprietary platforms.
Standard Chartered's broader digital asset strategy includes Zodia Markets, a trading infrastructure provider. The strategy also includes Libeara, a tokenization platform. These businesses give Standard Chartered access to institutional markets spanning tokenized securities, trading, custody and technology services.