Standard Chartered has signed definitive agreements to acquire UK-based digital asset custodian Zodia Custody. The announcement comes five months after Standard Chartered first announced its offer to acquire the company for an undisclosed fee had been accepted by the shareholders and noteholders of Zodia Custody.
Zodia Custody was created in 2020 as a joint venture between Standard Chartered's innovation division, SC Ventures, and Northern Trust. The platform was built to provide digital asset custodial services as well as transaction and settlement capabilities to institutions.
Standard Chartered will acquire 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.
Zodia Custody will be integrated into Standard Chartered's Securities Services unit, which houses the bank's digital asset custody operations. Standard Chartered says the deal will support its ambition of building a "unified client offering that integrates both traditional and digital asset securities services for institutional clients".
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The Securities Services business will be led by newly promoted global head Ying Ying Tan, who has also taken on the role of global head of digital assets. She succeeds Margaret Harwood-Jones, who has taken on the role of Standard Chartered's European and UK CEO.
"As part of the transaction, Zodia Custody will separate its digital asset software and professional services business and transfer the assets relating to that business to Zodia Solutions, an independent entity to be established under SC Ventures," adds Standard Chartered in its acquisition announcement.
Zodia Solutions will provide financial institutions with the architecture needed to launch digital asset services within a banking environment. The business is supported by bank investors including NAB Ventures Pty, Northern Trust Corporation, SBI Ventures Asset, Q Studio Restricted (Further Ventures), Emirates NBD Bank, Zodia Investments (Investcorp), and Zodia Holdings (owned by SC Ventures).
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Reporter, FinTech Futures
Francis Bignell is a reporter at FinTech Futures with a keen interest in all things fintech, especially in the Latin America region. Writing in the industry for four years, he has moderated webinars and podcasts as well as interviewed executives from a wide range of sectors.