Standard Chartered's full acquisition of Zodia Custody is in its final stages. Zodia Custody CEO Julian Sawyer stated that the two parties plan to sign an agreement by the end of June and complete the transaction by the end of August. Upon completion, the Zodia Custody brand will be phased out, and the business will be integrated into the Standard Chartered system.
Custody business merged into Standard Chartered
Sawyer stated that Standard Chartered currently operates digital asset custody businesses in Dubai, Luxembourg, and Hong Kong. This business will be merged with Zodia Custody and eventually integrated under the Standard Chartered brand.
He did not disclose the acquisition amount or valuation. Zodia Custody completed a $36 million funding round in 2023, with investors including SBI Holdings. The report cited market estimates suggesting the company has annual revenue of approximately $34.6 million and has raised a total of approximately $46 million.
Banks are turning to acquiring established platforms
Sawyer believes this deal illustrates a shift in how large banks are entering the digital asset market. Instead of continuing to build their own systems, banks are increasingly opting to acquire existing institutional-grade platforms to more quickly obtain the software and compliance infrastructure needed for custody, tokenization, and stablecoin payments.
He stated that customer interest in the relevant infrastructure software has increased significantly. As more financial institutions evaluate stablecoins and tokenization businesses, digital asset custody capabilities are extending from crypto-native scenarios to a wider range of financial asset applications.
Asia and the Middle East are progressing faster.
Sawyer also noted that the pace of digital asset regulation varies across different jurisdictions, but the overall direction is converging. Progress in Asia and the Middle East is faster, with Singapore, Hong Kong, and Abu Dhabi all advancing relevant regulations.
He believes that as institutional involvement deepens, the crypto industry is further converging with traditional financial compliance requirements, including standards such as KYC and AML. According to him, banks will all need to answer one question in the future: how to securely hold digital assets.
Additional information:The report mentioned that after the transaction is completed, Standard Chartered's existing digital custody business and Zodia Custody will be integrated into a single platform, and the Zodia Custody brand will exit the market in the medium term.
