Standard Chartered buys Zodia Custody as digital units combine

The proposed transaction remains subject to regulatory approvals across its operating markets.

Standard Chartered has signed definitive agreements to acquire Zodia Custody, consolidating its digital asset custody operations and expanding its services for institutional clients.

The deal follows the acceptance of the bank’s non-binding offer to acquire Zodia Custody (ZC).

Subject to regulatory approvals and customary closing conditions, Standard Chartered I H Limited will acquire 100% of Zodia Custody Limited, the parent company of ZC’s regulated operating entities in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg.

After completion, ZC’s regulated digital asset custody business will be integrated into Standard Chartered’s existing digital asset custody operations within its Securities Services division.

The integration is expected to generate additional revenue, strengthen the bank’s digital asset capabilities and support a unified offering covering both traditional and digital asset securities services for institutional clients globally.

As part of the transaction, ZC will separate its digital asset software and professional services business and transfer the related assets to Zodia Solutions, an independent entity to be established under SC Ventures, Standard Chartered’s innovation and investment arm.

Zodia Solutions will continue providing bank-grade infrastructure to financial institutions, including Standard Chartered, as they develop and expand digital asset services.

The new entity will be supported by several bank and investment group backers, including NAB Ventures, Northern Trust Corporation, SBI Ventures Asset, Q Studio Restricted (Further Ventures), Emirates NBD Bank, Zodia Investments (Investcorp) and Zodia Holdings, which is owned by SC Ventures.

Standard Chartered said the transaction is not expected to disrupt clients. Existing ZC custody clients will continue to receive services as usual.