Standard Chartered is preparing to consolidate its crypto custody business by bringing key parts of Zodia Custody directly under its investment bank. People familiar with the talks say the London-based lender wants to merge Zodia’s client-facing custody operations into the corporate and investment banking division that already handles digital asset services.
The move follows reports that Standard Chartered is weighing a buyout of minority shareholders in Zodia, which it launched in 2020 with Northern Trust to serve institutions. Its venture arm, SC Ventures, currently controls a majority stake, while other investors include SBI Holdings, Emirates NBD and National Australia Bank.
What Changes for Zodia’s Crypto Custody Business
Under the plan described to Bloomberg and other outlets, Standard Chartered would stop running parallel custody stacks inside the bank and at Zodia. Instead, the bank would absorb overlapping functions so its digital asset unit handles safekeeping for Standard Chartered’s institutional clients.
However, Zodia is not set to disappear. Reports say it would continue as a standalone software-as-a-service platform, white-labeling crypto custody technology to other banks and fintechs from hubs including London, Dublin, Luxembourg, Singapore, the UAE, Sydney and Hong Kong. That setup would leave Zodia focused on infrastructure and allow partner firms to bolt regulated custody into their offerings.
The Zodia restructuring comes as large banks race to scale institutional crypto services while keeping tighter control of risk and compliance. Standard Chartered has been steadily expanding in digital assets, backing not only Zodia Custody but also Zodia Markets, an institutional trading and brokerage venue, and exploring prime brokerage-style offerings through SC Ventures.
Integrating Zodia’s custody book into the bank’s existing digital asset section may save redundant expenses and streamline control of on-chain activities. It also raises doubts over how autonomous bank-backed crypto custodians can stay as their sponsors tighten integration and as authorities in the UK and Europe push for clearer lines of accountability inside big financial organizations.
Standard Chartered has refused to comment on the purported proposals, and minority shareholders have not publicly confirmed any takeover bid. The bank could announce the Zodia integration as soon as this quarter if the talks go well.
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