Standard Chartered and Northern Trust Partner to Launch Zodia, a Cryptocurrency Custodian for Institutional Investors

December 9, 2020 - SC Ventures, the innovation and ventures arm of Standard Chartered, has partnered with Northern Trust, a leading provider of asset servicing, to launch Zodia Custody, a custody solution for cryptocurrencies designed for institutional clients.

According to the press announcement, "Zodia is designed to enable institutions to invest in the emerging cryptocurrency assets that are transforming how financial markets operate, including transaction and settlement activities."

Zodia is expected to begin operations in London in 2021, subject to registration with the UK Financial Conduct Authority (FCA) and all applicable regulatory filings.

The new crypto custody solution aims to combine the traditional custody principles and expertise of a bank, with the agility of a fintech company.

At launch, Zodia will provide clients with custody services for some of the leading cryptocurrencies like Bitcoin, Ethereum, XRP, Litecoin, and Bitcoin Cash – which represent approximately 80% of the total traded digital assets [equivalent to $395 billion] on the top global cryptocurrency exchanges.

Speaking on the new partnership, Chief Executive Officer of Zodia, Maxime De Guillebon, said: "Zodia was established to address the need for a cryptocurrency custodian that truly understands custody. We combine the risk management, compliance, governance, and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies. By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability."

SC Ventures's Alex Manson said: "The launch of Zodia demonstrates our commitment to rewiring the DNA in banking. Drawing on Standard Chartered's heritage of providing custody services to institutional clients for 160 years, Zodia's mission is to be a 'force for good' by lifting industry standards for digital assets in a sustainable, safe, and responsible way."

President, Corporate & Institutional Services of Northern Trust, Pete Cherecwich, commented, "The introduction of digital custody backed by the know-how and experience of global banks is a breakthrough in the evolution and support of institutional cryptocurrency markets. Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments."

This week, SC Ventures also announced a joint-venture with Union Bank of the Philippines for the issuance of a retail bond on a digital platform leveraging blockchain technology for bond tokenization.