Standard Chartered has agreed to take full control of the crypto custody business of its subsidiary Zodia Custody, integrating the platform to launch institutional digital asset services in markets including the UK and Australia.
The non-binding offer was accepted by Zodia Custody shareholders and noteholders, according to a statement from the bank on Monday. The deal marks a significant step by a traditional lender to build a fully integrated crypto custody offering for institutional clients.
As part of the transaction, Zodia’s infrastructure unit will be separated into an independent software-as-a-service company called Zodia Solutions. The new entity will remain under the leadership of Zodia Custody's current CEO, Julian Sawyer, with Standard Chartered's venture capital arm holding a majority stake. Other existing Zodia investors, including Northern Trust and SBI Holdings, are in discussions regarding their future stakes in the new solutions business.
The acquisition positions Standard Chartered to capture a larger share of the rapidly growing market for institutional digital asset custody. By bringing the crypto platform in-house, the bank can offer regulated custody for assets like Bitcoin and Ethereum directly to pension funds, sovereign wealth vehicles, and asset managers who require the security of an established financial institution.
Standard Chartered’s move intensifies the competition among traditional financial giants entering the digital asset space. BNY Mellon and State Street have already made significant investments in their digital asset servicing capabilities. The bank will also compete with crypto-native custodians that have a strong foothold among crypto-focused institutions, including Fireblocks, BitGo, and Coinbase Custody.
The market for institutional custody has expanded significantly, driven by the 2024 approval of spot Bitcoin exchange-traded funds in the US and increasing allocations to digital assets from large-scale institutional investors.
The acquisition is part of a broader strategic shift for Standard Chartered. The bank separately announced on Tuesday that it is targeting a return on tangible equity of more than 15% by 2028. To achieve this, it plans to streamline its operations by cutting its corporate and functional roles by approximately 15% by 2030, signaling a strong focus on improving profitability and efficiency alongside its digital asset expansion.
This article is for informational purposes only and does not constitute investment advice.
