TLDR
- Standard Chartered is reportedly planning to restructure Zodia Custody by merging its crypto services with its corporate banking division.
- The restructuring plan will allow Zodia to continue operating as a standalone Software-as-a-Service (SaaS) platform for digital asset custody.
- Standard Chartered has yet to engage in discussions with Zodia’s minority shareholders, including Northern Trust and Emirates NBD.
- The bank is rapidly expanding its digital asset offerings, with plans to launch a crypto prime brokerage platform by summer 2025.
- This move follows a broader trend in the banking sector, with other major banks like Morgan Stanley and BNY Mellon increasing their focus on digital asset custody.
Standard Chartered is reportedly considering integrating its majority-owned crypto custodian, Zodia Custody, into its corporate banking division. The United Kingdom-based bank intends to combine Zodia’s digital asset custody services with its existing offerings. The restructuring plan could be announced as soon as this month, according to a Bloomberg report.
Zodia’s Future Integration into Corporate Bank Arm
Standard Chartered’s proposal involves folding Zodia’s crypto custody business into its corporate and investment bank. This division already provides similar services to clients. While the crypto business would be absorbed, Zodia would continue to operate as a standalone Software-as-a-Service (SaaS) platform for digital asset custody.
People familiar with the matter have revealed that the bank is yet to engage in talks with Zodia’s minority shareholders. These shareholders include major names such as Northern Trust, Emirates NBD, National Australia Bank, and SBI Holdings. It is unclear if these discussions will take place before the restructuring plan is made public.
Standard Chartered’s Digital Asset Expansion
Standard Chartered has been rapidly increasing its presence in the digital asset sector. The bank’s venture arm, SC Ventures, is reportedly working on launching a crypto prime brokerage platform. This follows the bank’s move to offer institutional crypto trading services, which it plans to roll out by the summer of 2025.
The bank’s push into digital assets began in 2020 with the establishment of Zodia Custody. Since then, Zodia has grown across seven offices in Europe, Asia, and the Middle East, raising external capital. It is now looking to adapt to an evolving market where global banks increasingly bring digital asset custody in-house.
Reshaping the Crypto Custody Landscape
Standard Chartered’s proposed restructuring follows a trend seen with other major global banks. In February, Morgan Stanley applied for a U.S. national trust bank charter. This would enable the bank to handle digital assets like Bitcoin and Ethereum within a regulated banking framework.
In October 2022, BNY launched a digital asset custody platform in the U.S. This platform allows selected clients to hold and transfer Bitcoin and Ether alongside traditional assets, integrating both digital and traditional asset management services.
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