Standard Chartered has signed definitive agreements to acquire Zodia Custody, following the acceptance of its non-binding offer. Standard Chartered I H Limited will buy 100% of Zodia Custody Limited, the parent company of Zodia Custody's regulated operating entities in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. The deal is subject to regulatory approvals and customary closing conditions.
After completion, Zodia Custody's regulated digital asset custody business will be integrated into Standard Chartered's existing digital asset custody activities within Securities Services. The bank said the regulated custody business will sit within its Financing and Securities Services business.
SOFTWARE BUSINESS MOVES TO ZODIA SOLUTIONS
As part of the transaction, Zodia Custody will separate its digital asset software and professional services business. It will transfer the related assets to Zodia Solutions, an independent entity to be established under SC Ventures.
Zodia Solutions will provide bank-grade infrastructure to financial institutions, including Standard Chartered, as they launch and scale digital asset services. It is described as an institutional digital asset infrastructure platform. The bank said it will be supported by several bank investors: NAB Ventures, Northern Trust, SBI Ventures Asset, Q Studio Restricted (Further Ventures), Emirates NBD Bank, Zodia Investments (Investcorp) and Zodia Holdings, which is owned by SC Ventures.
OWNERSHIP AND THE ROAD TO SIGNING
Before the agreement, Standard Chartered's SC Ventures owned just under 70% of Zodia Custody. It has agreed to buy out the minority shareholders and noteholders, subject to regulatory approval. The minority investors include co-founder Northern Trust, Japan's SBI, National Australia Bank and Emirates NBD.
The signing follows the acceptance of Standard Chartered's non-binding offer by Zodia's shareholders in May, with regulatory approvals still pending. Standard Chartered reportedly began considering folding Zodia's crypto custody business into its corporate and investment banking division in April.
Zodia Custody was incorporated in London on 22 January 2020. In 2023 it announced a $36 million funding round led by SBI Holdings. It serves institutional clients globally as a digital asset custodian, using bank-grade infrastructure and regulated custody solutions.
CRYPTO EXPANSION AND CLIENT CONTINUITY
The acquisition forms part of Standard Chartered's broader expansion in crypto services. In September, the bank launched spot Bitcoin and Ether trading for institutional clients in the United Arab Emirates.
The bank said no disruption to clients is expected as a result of the transaction. Existing Zodia Custody clients will continue to be serviced as usual.
REGULATORY APPROVALS STILL PENDING
Regulatory approvals remain outstanding, and the purchase cannot complete until they are secured and the closing conditions are met. Zodia Solutions, meanwhile, is yet to be established under SC Ventures.
SC Ventures builds and invests in breakthrough ventures in and beyond banking. It also provides a platform for organisations to collaborate and co-create fintech ecosystems.
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