Standard Chartered Eyes Full Acquisition of Zodia Custody to Consolidate Digital Asset Strategy

Standard Chartered PLC is exploring a full takeover of Zodia Custody Ltd., aiming to merge the crypto custody specialist with one of the bank's internal digital asset divisions. Sources indicate the restructuring could be finalized as early as this month. The potential acquisition would see Zodia's operations integrated into the investment bank's service suite, although the bank may allow Zodia to continue operating as a standalone software-as-a-service (SaaS) entity for cryptocurrency custody. The bank has not yet clarified if it has approached minority shareholders, which include Northern Trust Corp., Emirates NBD Bank PJSC, National Australia Bank Ltd., and SBI Holdings Inc. Zodia was originally established in 2020 as a joint venture between Standard Chartered and Northern Trust. The firm has since expanded its reach, raising $18.5 million in a Series A funding round last July to bolster its stablecoin payment services. Currently, Zodia employs approximately 150 staff across seven global hubs, including London, Singapore, and Hong Kong. This move follows a broader trend of traditional financial institutions ramping up digital asset capabilities amid improving regulatory clarity in the U.S. and Europe. Standard Chartered has already launched institutional spot trading for Bitcoin and Ether and established custody services in Luxembourg. The battle for institutional custody is intensifying, with peers such as BNY Mellon, State Street, and Morgan Stanley aggressively expanding their footprints to capture the growing demand for secure digital asset storage.