Zodia Custody, a subsidiary of Standard Chartered, has officially launched its digital asset custody services for financial institutions in Singapore.
The company aims to cater to the growing demand from institutions seeking bank-grade custody solutions for digital assets in the Asia-Pacific region, CNBC reported.
This development positions Zodia as the first entity in Singapore that is both owned by and partnered with banks to offer digital asset custody services to financial institutions.
Zodia Custody Provides Services to Major Financial Institutions
Zodia Custody was established in 2021 through a partnership between Standard Chartered and Northern Trust, highlighting the increasing interest of major financial institutions in the digital currency space.
Additionally, Zodia is partially owned by SBI Digital Asset Holdings, the crypto division of Japanese bank SBI, which has plans to launch its own custody business in Japan as part of this collaboration.
Zodia Custody serves a diverse clientele that includes hedge funds, high-frequency traders, prime brokers, exchanges, and asset managers.
The company has aligned itself with Standard Chartered’s robust brand reputation in Singapore, leveraging the bank’s risk management, compliance frameworks, information security, and operational resilience capabilities.
Singapore has emerged as a significant hub for digital asset adoption, with a crypto ownership rate of 19%, surpassing the global average of 15%, according to Statista, a market research firm.
This growth is further evident in the substantial funding that crypto companies in Singapore continue to attract.
Singapore Continues to Remain a Fintech Hotspot
Despite a challenging period for the industry, with the collapse of several prominent names, Singapore maintained its momentum as a fintech hotspot, with cryptocurrency and blockchain leading the way in fintech investments in 2022.
According to KPMG’s Pulse of Fintech report for the second half of 2022, crypto-related funding in Singapore reached $1.2 billion, although it did experience a modest 21% decline compared to the previous year. Globally, crypto startups secured $23.1 billion in funding in 2022, marking a 23% year-over-year decrease.
Zodia’s strategic expansion into Singapore follows its recent move into Abu Dhabi, where it obtained in-principle regulatory approval earlier this month. This expansion aims to leverage Abu Dhabi’s crypto-friendly regulatory environment and its status as a prominent financial center in the United Arab Emirates.