Zodia Custody has unveiled Zodia Rewards, an opt-in token rewards program designed specifically for institutional clients.
Zodia Custody is a digital assets platform backed by institutions as Standard Chartered and Northern Trust. It offers custody, treasury, and settlement solutions to support institutional investors in maximising the potential of digital assets securely. Registered with multiple regulatory bodies, it operates under licences from the Financial Conduct Authority and others.
A secure digital assets platform
The institutional stablecoin market is expected to boast a transaction value of USD 5 trillion in 2024. However, many custody models and fees disadvantage clients by penalising them for maintaining balances in stablecoins. Zodia Rewards seeks to resolve these issues by enabling clients to maximise the potential value of their eligible assets through:
- Waived custody fees: applicable to eligible stablecoins and other tokens;
- Discretionary rewards: clients can access monthly discretionary rewards of over 500 basis points; these rewards are tiered based on the amount of assets held with Zodia Custody, with a required average monthly minimum balance;
- Collateral utility: eligible tokens held through Zodia Rewards can also be utilised as collateral for Zodia Custody’s off-venue settlement solution, Interchange, and for borrowing with select network partners, while still qualifying for discretionary rewards. Additionally, Interchange custody fees are waived for eligible tokens included in the rewards program.
Officials from Zodia stated that the Zodia Rewards program waives the custody fees on eligible tokens and encourages clients to use them as intended, moving, holding, and deploying capital at scale. The company is establishing a flywheel of use cases with an incentive structure that enables institutions to manage liquidity efficiently while ensuring a high level of security.
Zodia rewards program
At its launch, Zodia Rewards will support a range of tokens, including Circle’s USDC, Ethena’s USDe, USDtb, and the Global Dollar Network’s USDG. Rewards will be distributed to the wallets of Zodia Custody clients in the native tokens they hold. Clients who register before September will gain access to updated rewards during the initial three-month launch period, after which standard reward tiers will be implemented.
