Standard Chartered Signs Zodia Deal, but Approval Awaits

TLDR

• Standard Chartered signed definitive agreements to acquire 100% of Zodia Custody Limited.
• The acquisition still requires regulatory approval, while the bank has not disclosed financial terms.
• Zodia Custody’s regulated operations will join Standard Chartered’s Securities Services division.
• Zodia Solutions will operate separately under SC Ventures, with backing from several banking investors.

Standard Chartered signed definitive agreements on Wednesday, October 21, to buy digital asset custodian Zodia Custody. The deal advances plans to move the company’s custody operations into the bank. The signing follows a May offer accepted by Zodia shareholders and noteholders.

Standard Chartered Seeks Full Ownership

Through its Standard Chartered I H Limited unit, the lender plans to purchase all shares in Zodia Custody Limited. Zodia provides custody services to financial institutions that need secure storage for digital assets. The target company oversees regulated operations in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg.

The agreement still needs regulatory clearance and must meet standard closing conditions. Neither company disclosed a purchase price or a new completion date. The parties had originally aimed to sign final documents by June and finish the transaction by August.

Custody Business to Join Securities Services

After closing, the bank will place Zodia’s asset safekeeping operations in its Securities Services division. This team already serves institutions handling traditional securities and digital assets. Elsewhere, Ramp applied for a US trust bank charter to provide digital asset custody.

Standard Chartered said Zodia clients should continue receiving services without interruption. The bank expects the combined operation to support institutions seeking custody for cryptocurrencies and other digital assets across several financial centers. The lender wants clients to access both types of services through its banking network.

Zodia Solutions Will Operate Separately

Zodia’s software and professional services will shift to Zodia Solutions, a separate company under SC Ventures. Its clients will include Standard Chartered. Zodia Solutions will provide technology and support to banks developing crypto products. Backers include Northern Trust, NAB Ventures, SBI Ventures and Emirates NBD.

Craig Perrin will lead Zodia Solutions, while Richard Clark heads Zodia Custody. Clark took over in September after Julian Sawyer left the chief executive role. In a separate move, Cross River Bank integrated Ripple’s RLUSD stablecoin into its payments system.

Standard Chartered has announced plans for crypto custody in Singapore, including support for selected cryptocurrencies, stablecoins and tokenized assets. Separately, JPMorgan launched JPM Coin on Ethereum for approved institutional clients on October 19. Zodia gained a Luxembourg payment institution license in June, allowing it to handle custody and transfers of regulated stablecoins across the European Union.

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