Standard Chartered Signs Deal to Acquire Zodia Custody

Standard Chartered has signed definitive agreements to acquire Zodia Custody, moving to consolidate its digital-asset custody operations under its Securities Services business.

Announced on October 21, the transaction will see Standard Chartered I H Limited acquire 100% of Zodia Custody Limited, the parent company of its regulated operating entities in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. Completion remains subject to regulatory approvals and customary closing conditions.

The deal follows the bank’s previously announced plans to integrate Zodia Custody into its digital-assets strategy, as detailed in Unlock Blockchain’s earlier coverage of Standard Chartered’s Zodia Custody acquisition and tokenization expansion. Following completion, Zodia Custody’s regulated digital-asset custody business will be integrated into Standard Chartered’s existing custody activities within Securities Services.

Zodia’s Technology Business to Separate

The transaction will also separate Zodia Custody’s digital-asset software and professional services business from its regulated custody operations.

Assets associated with that business will be transferred to Zodia Solutions, an independent entity to be established under SC Ventures, Standard Chartered’s venture-building and investment arm. Zodia Solutions will continue providing infrastructure and technology services to financial institutions seeking to develop and scale digital-asset operations.

The new entity will be supported by several bank and investment partners, including National Australia Bank’s NAB Ventures, Northern Trust, SBI Ventures, Emirates NBD, Investcorp and SC Ventures.

The separation creates a distinction between the regulated custody business being acquired by Standard Chartered and the technology business that will continue serving financial institutions.

Institutional Digital-Asset Services Expand

Standard Chartered said the acquisition would deepen its digital-asset custody capabilities and support its broader strategy of integrating digital assets into its institutional services.

The bank has already expanded beyond custody into institutional crypto trading. In September, it launched Bitcoin and Ether spot trading for institutional clients in the UAE, building on its existing custody operations. Unlock Blockchain previously reported on Standard Chartered’s UAE institutional crypto trading launch.

Custody remains a key part of institutional digital-asset infrastructure, providing services to safeguard assets and support their administration. Consolidating custody operations across multiple jurisdictions could also help the bank coordinate its digital-asset offering with its existing securities services business.

The acquisition also builds on Standard Chartered’s earlier move into the UAE digital-asset custody market through Zodia Custody. The bank announced plans to launch cryptocurrency custody services in Dubai in 2023, establishing an early foundation for its institutional digital-asset business in the region.

Standard Chartered has not disclosed the financial terms of the acquisition. It said existing Zodia Custody clients would continue to receive services as usual, with no expected disruption resulting from the transaction.

The deal will bring Zodia Custody’s regulated operations into Standard Chartered’s banking infrastructure while allowing its technology business to continue operating separately through Zodia Solutions.