Standard Chartered to Buy Zodia Custody

Standard Chartered announced that its’ non-binding offer to acquire Zodia Custody (ZC), a digital asset custodian backed by SC Ventures (SCV), has been accepted by the shareholders and noteholders of Zodia Custody. The completion of the acquisition is subject to regulatory approvals and customary closing conditions.

Strategic Rationale

The transaction will see ZC’s regulated custody activities integrated into SC’s existing digital asset custody Financing and Securities Services business, thereby consolidating the Group’s digital asset custody businesses. The move will be driving value by unlocking revenue and cost synergies and enabling a more comprehensive offering to DA custodian clients globally.

As part of the transaction, ZC will separate its institutional digital asset infrastructure platform business and transfer all the assets related to this business to an independent entity that will be set up, Zodia Solutions, under SC Ventures. Zodia Solutions will continue to provide bank-grade infrastructure to financial institutions, including Standard Chartered, supporting institutions as they launch and scale digital asset services. Zodia Solutions will be supported by a number of bank investors, including existing Zodia Custody investors, reinforcing the bank-grade infrastructure model underpinning the platform.

This transaction also reinforces the strategic value of SC Ventures, particularly with its venture building focus, demonstrating the ability to originate, build and scale commercially relevant solutions that support the bank’s long-term digital asset strategy.

Commenting on the acquisition, Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered said: “This acquisition will accelerate the growth of Standard Chartered’s global digital assets custody portfolio and support the growth of our Financing and Securities Services business. It also reflects the group’s continued focus on building an end-to-end Digital Assets offering and further strengthening our position as the trusted bridge between TradFi and DeFi.”

“Digital asset custody is increasingly being delivered within banking environments. At the same time, financial institutions are increasingly seeking specialist infrastructure partners to support the launch and scale of digital asset services,” said Julian Sawyer, CEO of Zodia Custody. “We have seen strong and accelerating demand for our Solutions platform, as institutions look for trusted, bank-grade infrastructure that enables them to design, deliver and grow digital asset capabilities at scale.”

Alex Manson, CEO, SC Ventures said: “This is a strong example of how SC Ventures translates emerging technologies and market opportunities into commercially relevant capabilities for the bank. It reinforces the value of the SC Ventures’ model in enabling the bank to participate in emerging ecosystems through scalable ventures and strategic partnerships.”

There is no expected disruption to clients as a result of the transaction. Existing ZC’s custody clients will continue to be serviced.

Source: Standard Chartered