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XBTO, a global leader in institutional digital asset management, has partnered with Zodia Custody, the institutional digital asset custodian backed by Standard Chartered Ventures, to bring institutional-grade Bitcoin custody and yield solutions to market.
Through this collaboration, XBTO's Diamond Hands BTC SMA clients will gain access to Zodia Custody's regulated custody and collateral mirroring capabilities. In parallel, Zodia Custody clients will be able to allocate to XBTO's Diamond Hands BTC strategy, giving them the ability to generate yield on their Bitcoin holdings in a fully compliant and secure environment, limiting counterparty risk that institutional clients would take.
Both XBTO and Zodia Custody operate entities regulated by the Financial Services Regulatory Authority (FSRA).
The partnership will initially target key financial hubs, where institutional interest in Bitcoin is accelerating as both a reserve asset and a yield-generating instrument.
The launch comes at a time when 86% of institutional investors say they have or plan to gain exposure to digital assets in 2025. This trend is further evidenced by the rise of Bitcoin treasury companies, with the number of publicly traded firms holding BTC on their balance sheet reaching over 125 this year. Pioneers in this space include Strategy in the U.S., which now holds over 636,000 BTC, Japan's Metaplanet, and leading European entities like The Blockchain Group and H100 Group.
Karl Naïm, Group Chief Commercial Officer of XBTO
Karl Naïm, Group Chief Commercial Officer of XBTO, said:
"Institutions want two things from digital assets: security and productivity. With Zodia Custody, clients gain the assurance of a regulated custodian backed by one of the world's leading banks. By combining that with XBTO's proven Diamond Hands BTC strategy, we are turning Bitcoin from a static reserve asset into one that can work for our clients without compromising on safety. This partnership reflects our vision of digital assets becoming a natural extension of institutional balance sheets."
XBTO's Diamond Hands BTC SMA strategy is an options-based strategy designed to generate in-kind yield by harvesting volatility, with a yearly target return of 5–8% p.a. (in BTC terms) and a volatility target of approximately 4% p.a. The strategy's primary objective is to accumulate more BTC with strong risk control.
Dominic Longman, Global Head of Markets, Zodia Custody
Dominic Longman, Global Head of Markets, Zodia Custody, said:
"At Zodia Custody, we believe digital assets must meet the same standards as traditional finance to be trusted by institutions. Partnering with XBTO allows us to extend that principle to yield generation, enabling clients to earn on their Bitcoin in a secure, sustainable, and regulated way."
The firms plan to offer a similar offering on Ethereum, given the rising interest for ETH Treasury from companies.
Founded in 2015 as a proprietary trading firm, XBTO has expanded into a full-service crypto quantitative investment firm since 2023. With a strong focus on Bitcoin, XBTO delivers risk-adjusted strategies across the alpha–beta continuum designed to perform across market cycles and regulatory environments. XBTO operates under regulatory oversight, with operating entities regulated by the Bermuda Monetary Authority and the Financial Services Regulatory Authority in Abu Dhabi. It operates from key financial hubs including Bermuda, New York, Miami, London, Paris, and Abu Dhabi.
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