Standard Chartered to absorb Zodia Custody’s core business, spin out Zodia Solutions
Standard Chartered will absorb Zodia Custody’s regulated crypto business and spin out Zodia Solutions, as big banks move to own core digital asset custody in-house.
Standard Chartered will absorb the regulated custody operations of Zodia Custody while spinning off a separate entity called Zodia Solutions. The restructuring marks the British banking giant's move to bring core digital asset custody services in-house rather than operating through external partnerships.
The decision reflects a broader trend among major financial institutions to directly control their cryptocurrency custody infrastructure. Zodia Custody was originally established as a joint venture to provide institutional-grade digital asset storage services. By absorbing the regulated custody business directly into Standard Chartered's operations, the bank gains full oversight of client digital asset holdings and regulatory compliance processes.
This restructuring aligns with similar moves by other major banks seeking to establish proprietary digital asset custody capabilities. As institutional demand for cryptocurrency services grows, banks are recognizing the strategic importance of controlling custody operations internally rather than relying on third-party providers. The move also allows Standard Chartered to streamline its digital asset offerings under direct banking supervision and regulation.
Market observers will be watching how Standard Chartered integrates the custody operations and whether other major banks follow similar consolidation strategies. The success of this restructuring could influence how traditional financial institutions approach their digital asset service architectures moving forward.
Source: Cointelegraph
