Standard Chartered to Integrate Zodia Custody into Core Investment Bank

Standard Chartered is exploring a strategic reorganization of Zodia Custody, aiming to fold the crypto custodian's primary business into its corporate and investment banking division. This shift reflects a growing trend among global systemic banks to move digital asset infrastructure inside their regulated core operations rather than maintaining them as separate ventures. Under the proposed plan, Zodia, which was established in 2020, will reportedly continue to operate as a standalone Software-as-a-Service (SaaS) platform for digital asset custody. An official announcement regarding the restructuring could be made as early as this month. It remains unclear if the bank has initiated negotiations with Zodia's minority shareholders, which include Northern Trust, Emirates NBD, National Australia Bank, and SBI Holdings. The bank has been aggressively expanding its digital footprint, with plans to roll out institutional crypto trading by summer 2025 and exploring a crypto prime brokerage platform via its venture arm, SC Ventures. This integration is designed to streamline the bank's institutional offering and enhance regulatory compliance. This move mirrors actions by other financial giants; Morgan Stanley recently applied for a US national trust bank charter to facilitate digital asset services, and BNY Mellon has already launched a platform allowing selected clients to hold Bitcoin and Ether alongside traditional assets. By bringing these capabilities in-house, Standard Chartered positions itself to better serve institutional clients seeking a unified platform for conventional and tokenized assets.