Standard Chartered subsidiary Zodia Custody launches in Singapore

It is worth noting that digital asset custody is not yet a licenced activity in Singapore, which is why Zodia Custody is not currently required to obtain a licence. Nevertheless, the company is positioning itself strategically for the time when regulatory requirements come into effect. 

Representatives from Zodia Custody cited by coindesk.com expressed the company's intent, revealing that they want to establish a presence in a global financial centre as soon as they have a regulatory roadmap. 

This development marks a noteworthy fusion of a traditional financial institution with a digital asset entity in Singapore. Zodia Custody is already registered in several countries, including the United Kingdom, Ireland, and Luxembourg, with a pending application for registration in Japan. 

In addition to Zodia Custody, another entity known as Zodia Markets, backed by Standard Chartered Ventures, recently received provisional approval to function as an over the counter (OTC) crypto broker-dealer in Abu Dhabi. 

Standard Chartered has been actively collaborating with the Monetary Authority of Singapore (MAS) and various financial institutions as part of an initiative known as Project Guardian, focused on testing asset tokenization. The Monetary Authority of Singapore (MAS) has announced the commencement of Project Guardian in June 2022 as a collaborative initiative with the financial industry that seeks to explore the economic potential and use cases of asset tokenization. 

According to coindesk.com Standard Chartered is also in the process of developing an initial token offering platform for issuing asset-backed security tokens to be listed on the Singapore Exchange.

Other developments from Zodia Custody

Owned by Standard Chartered, Northern Trust and SBI, Zodia Custody offers digital asset custody services that enable global institutions, corporations, and professional investors to embrace the digital asset future without compromising on security, well-established standards, and principles. 

In May 2023, Zodia Custody raised USD 36 million in a Series A funding round led by SC Ventures, which is the venture arm of Standard Chartered. 

The Japanese conglomerate SBI Holdings also took part in the funding round alongside several unnamed investors, and Zodia Custody revealed that it planned to use the funds to fuel its geographic expansion and increase the company’s coverage. Moreover, Zodia Custody wanted to improve its interchange and off-exchange settlement services in a bid to protect client assets that are traded on crypto exchanges.