Standard Chartered is planning a structural shake-up of its cryptocurrency custody subsidiary, Zodia Custody. Citing sources familiar with the situation, Bloomberg reports that the bank is considering integrating Zodia’s operations into its corporate banking division to streamline the group’s digital asset activities.
Under the current proposal, Zodia Custody would continue to operate as an independent software-as-a-service (SaaS) platform, providing crypto custody services to its clients. The primary objective of this move is to eliminate redundant custody functions within the bank, thereby boosting overall operational efficiency.
Institutional Background and Ownership
Launched in late 2020, Zodia Custody was a strategic joint venture between Standard Chartered and Northern Trust Corp. Beyond its founding shareholders, the subsidiary has attracted a roster of institutional investors, including Emirates NBD, National Australia Bank (NAB), and Japan’s SBI Holdings.
It remains unclear whether these minority shareholders have been involved in discussions regarding the merger. However, sources suggest that the bank could make a formal announcement as early as this month.
Despite the potential restructuring, Zodia Custody has maintained a steady pace of global expansion. The company currently operates out of seven offices in major financial hubs, including London, Singapore, and Hong Kong. Last year, Zodia entered into a significant partnership with Galaxy Digital to support the latter’s institutional staking business in Europe, managing assets that reached as high as $4.2 billion at one point.
Standard Chartered has been increasingly active in the digital asset space. In January, the bank launched a cryptocurrency prime brokerage through its innovation arm, SC Ventures. Last November, it also partnered with DCS Card Centre to launch a credit card in Singapore that supports stablecoin settlements.
The bank has also taken a proactive stance on stablecoin regulation. In mid-March, reports emerged that Standard Chartered is a frontrunner to secure one of Hong Kong’s first stablecoin issuer licenses. Furthermore, the bank recently signed a memorandum of understanding with South Korea’s Hana Financial Group to explore collaborative opportunities in the stablecoin sector.
