Standard Chartered has signed a non-binding proposal to buy Zodia Custody, the digital asset custody company backed by SC Ventures.
Zodia Custody provides bank-grade, regulated digital asset custody solutions for institutional clients worldwide.
The proposal has been accepted by Zodia Custody’s shareholders and noteholders.
The deal is still subject to regulatory clearance and other standard closing requirements.
If completed, Zodia Custody’s regulated custody operations will be folded into Standard Chartered’s existing digital asset custody business within Financing and Securities Services, bringing the group’s custody activities in this area together.
Zodia Custody CEO Julian Sawyer said: “Digital asset custody is increasingly being delivered within banking environments. At the same time, financial institutions are increasingly seeking specialist infrastructure partners to support the launch and scale of digital asset services.
“We have seen strong and accelerating demand for our Solutions platform, as institutions look for trusted, bank-grade infrastructure that enables them to design, deliver and grow digital asset capabilities at scale.”
As part of the same process, Zodia Custody’s institutional digital asset infrastructure platform business will be separated.
The assets tied to that operation will move to a newly created independent company, Zodia Solutions, under SC Ventures.
Zodia Solutions is expected to keep providing bank-grade infrastructure to financial institutions, including Standard Chartered, as they develop and expand digital asset services.
The company said Zodia Solutions will be backed by several bank investors, among them current investors in Zodia Custody.
Standard Chartered added that it does not expect the transaction to interrupt service for clients, and existing custody customers of Zodia Custody will continue to be served.
Standard Chartered Financing and Securities Services Global Head Margaret Harwood-Jones said: “This acquisition will accelerate the growth of Standard Chartered’s global digital assets custody portfolio and support the growth of our Financing and Securities Services business.
“It also reflects the group’s continued focus on building an end-to-end Digital Assets offering and it further strengthens our position as the trusted bridge between TradFi and DeFi.”
