SC Ventures, Standard Chartered’s innovation and ventures arm has partnered with Northern Trust, a leading asset servicing provider, to launch a cryptocurrency custody service by next year. Standard Chartered announced yesterday that it would be renamed Zodia Custody by the custody service.
The agreement to launch Zodia Custody must be authorized and registered with the Financial Conduct Authority (FCA) of the United Kingdom and other related regulatory bodies. Zodia will allow institutional investors to store leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash when released (BCH).
Due to the growing institutional interest in crypto-currencies, Standard Chartered is rolling out the service. The British bank reported that institutional investors currently make only 9 percent of investments in cryptocurrencies. Over the coming years, however, the percentage will increase dramatically, and Zodia Custody will be available to help institutional investors store their crypto assets.
Zodia would have the versatility of a fintech business and the conventional standards of custody and knowledge of a bank, according to the press release, enabling it to have a high level of infrastructure to meet institutional investors’ needs. The Zodia platform will be continuously updated in order to respond to the changing needs of the industry and those of consumers.
Maxime De Guillebon, Zodia’s Chief Executive Officer, is excited about the custody operation launch. He said Zodia was built to resolve the need for a custodian of cryptos that understands custody services.
We combine the risk management, compliance, governance and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologieshe added
Alex Manson of SC Ventures claimed in his statement that the bank remains committed to the rewiring of banking DNA. For 160 years, Standard Chartered has been supplying institutional investors with custody services. For the cryptocurrency market, the establishment of Zodia will do a lot of good as it will provide sustainable, stable, and responsible services.
Globally, institutional investors have entered the crypto-currency market in record numbers. Crypto-currency funds have raised over $12.5 billion from institutional investors so far this year. This comes as more institutional investors now see Bitcoin as a secure investment tool. The entry of Zodia into the market could encourage more institutional investors to invest in a wide range of crypto-currencies, especially in the UK.