Standard Chartered’s Crypto Custody Platform Zodia Launches In Hong Kong

Zodia, an institutional cryptocurrency custody platform co-owned by British bank Standard Chartered, the financial firm Northern Trust, and Japanese SBI Holdings, has launched its services in Hong Kong.

According to a CNBC report on Oct. 29, Zodia CEO Julian Sawyer said the platform is expanding its services in Hong Kong in response to the growing demand for crypto from institutions. Crypto demand in Hong Kong is mainly driven by institutional investors rather than retail customers, which is suitable for Zodia’s crypto custody service, he added.

Zodia Custody, established in 2021, offers safe cryptocurrency storage solutions for financial institutions. The platform secured $36 million in a Series A funding round in April this year. Moreover, Zodia supports 38 cryptocurrencies, including Ether, BTC, and stablecoins like USDC and USDT.

Sawyer emphasized that Hong Kong’s crypto stance aligns with Zodia’s ambitions. The local government and regulators view digital assets as the future and seek to establish Hong Kong as a central hub for them.

Zodia’s move into Hong Kong is part of a broader strategy to establish a solid presence in the Asia-Pacific (APAC) region. In recent months, the company has already expanded its services to Australia, Singapore, and Japan, establishing itself as a significant player in the institutional crypto storage sector. As per the CEO, they have noticed a clear demand for action from clients in all four of these markets.

Sawyer added:

“We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side.”

Moreover, Zodia will gradually introduce its services in Hong Kong, starting with support for a limited number of crypto assets, the report stated. The company is reportedly in discussions with the Hong Kong Monetary Authority and SFC about becoming regulated in the financial district.

Hong Kong Aims To Become Crypto Hub With New Regulations

Hong Kong is keen on crypto, even though China is tough on it, having banned Bitcoin trading and mining in 2021. The SFC introduced a regulatory framework for crypto assets earlier this year, allowing firms to obtain registration and provide their crypto services in a regulated manner. Currently, only two companies, Hash Blockchain and OSL Digital, have secured licenses from the regulator. Moreover, crypto exchange OKX announced its plans to obtain a license to operate in the region.