Zodia Custody, the institutional cryptocurrency custody platform co-owned by Standard Chartered, SBI Holdings, and Northern Trust, is expanding its services to Hong Kong. The move comes in response to the growing demand for crypto from institutional investors in the region.
According to Julian Sawyer, CEO of Zodia, the demand for crypto in Hong Kong is primarily driven by institutional investors rather than retail customers, making it an ideal market for Zodia’s crypto custody offering. Sawyer also noted that Hong Kong’s regulatory stance aligns with Zodia’s ambitions, as the local government sees digital assets as the future and aims to position Hong Kong as a hub for cryptocurrencies.
This expansion into Hong Kong is part of Zodia’s aggressive scaling strategy in Asia. In recent months, the platform has launched services in Japan, Singapore, and Australia to cater to the increasing demand from institutional clients across these markets.
“We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side,” said Sawyer, highlighting the global interest in Zodia’s services.
Zodia plans to gradually roll out its services in Hong Kong, initially offering support for a limited number of cryptocurrency assets. The firm is in discussions with Hong Kong’s Securities and Futures Commission and Hong Kong Monetary Authority to obtain regulatory approval in the financial district.
Standard Chartered originally announced its plans to launch an institutional custodial platform for cryptocurrencies, including Bitcoin (BTC), in late 2020. In 2021, this vision became a reality with the launch of Zodia. The platform successfully raised $36 million in a Series A funding round led by SBI Holdings in April 2023.
Zodia currently supports 38 cryptocurrencies, including BTC, Ether (ETH), and stablecoins like Tether (USDT) and USDC. With its expansion into Hong Kong, Zodia aims to provide institutional investors in the region with a secure and regulated platform to store and manage their digital assets.
As Zodia continues to expand its presence in Asia and capture the growing demand for crypto custody services, it remains committed to delivering best-in-class security measures and regulatory compliance to institutional clients. The platform’s collaboration with industry-leading partners like Standard Chartered, SBI Holdings, and Northern Trust further strengthens its position in the market.
Zodia’s entry into the Hong Kong market signifies its commitment to serving institutional clients in the region and its confidence in the future of digital assets. As the crypto industry continues to evolve, Zodia’s expansion reflects the increasing institutional adoption and recognition of cryptocurrencies as a legitimate asset class.