Zodia Expands Cryptocurrency Custody Services in Hong Kong Amid Rising Institutional Demand
Summary:
Zodia, a top cryptocurrency custody platform co-owned by Standard Chartered, SBI Holdings, and Northern Trust, is extending its services to Hong Kong due to increased institutional demand. The firm's move aligns with Hong Kong's positive attitude towards digital assets. This launch is part of Zodia's broader expansion in Asia. Initially, Zodia will support a limited number of cryptocurrencies in Hong Kong and is in talks for becoming regulated in the financial district with local authorities. Zodia, launched in 2021, supports 38 cryptocurrencies and raised $36 million in a Series A funding round led by SBI Holdings in 2023.
The leading cryptocurrency custody platform, Zodia, jointly owned by British bank Standard Chartered, Japan's SBI Holdings, and financial company Northern Trust, is broadening its reach with services in Hong Kong. The move comes in response to the increased demand for cryptocurrency services from institutional entities within the region, as noted by Zodia CEO Julian Sawyer in a recent CNBC report from October 29.
The surge in cryptocurrency demand within Hong Kong is predominantly driven by institutional investors, making it an ideal fit for Zodia's offerings. Sawyer also noted that Hong Kong's positive view towards cryptocurrency aligns well with Zodia's aspirations to position the city as an epicenter for digital assets.
Zodia's launch in Hong Kong is a part of its broader strategy to ramp up operation in Asia, having recently begun operations in Japan, Singapore, and Australia. Sawyer stated that each of the four regions has clients looking to capitalize on their services and also attract prospective clients beyond these jurisdictions.
The report elucidates that Zodia's economic operations in Hong Kong will be gradual, providing support for selected digital assets initially. The company is also reportedly collaborating with Hong Kong’s Securities and Futures Commission and Hong Kong Monetary Authority for regulation within the financial district.
Standard Chartered first disclosed its plan to introduce an institutional vault for cryptocurrencies, including Bitcoin, towards the end of 2020. Zodia, which was launched in 2021, amassed $36 million in a Series A funding round spearheaded by SBI Holdings in April 2023. The platform currently backs 38 cryptocurrencies, encompassing BTC, Ether, Tether, and USDC.
Published At
10/30/2023 6:55:55 AM
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