Zodia Custody, a subsidiary of Standard Chartered, is now providing digital asset custody services for financial institutions in Singapore. This makes Zodia the first entity in the city that is both owned by and partnered with banks to offer such services.
The company is targeting the growing demand from institutions seeking bank-grade custody solutions for digital assets in the Asia-Pacific region. Its clientele includes hedge funds, high-frequency traders, prime brokers, exchanges, and asset managers. Zodia has made use of Standard Chartered’s risk management, compliance frameworks, information security, and operational resilience capabilities.
Singapore has become a major hub for digital asset adoption, with a crypto ownership rate of 19%, surpassing the global average of 15%, as per Statista. Despite a difficult period for the industry, Singapore has retained its momentum as a fintech hotspot, with cryptocurrency and blockchain leading the way in fintech investments in 2022. According to KPMG’s Pulse of Fintech report, crypto-related funding in Singapore reached $1.2 billion, although it experienced a 21% decline compared to the previous year (globally, $23.1 billion was secured in 2022, a 23% year-over-year decrease).
To capitalize on the crypto-friendly regulatory environment and the status of Abu Dhabi as a prominent financial center, Zodia has also recently expanded into the United Arab Emirates, obtaining in-principle regulatory approval earlier this month. The move is part of the company’s strategy to tap into the growing demand for digital asset custody services in the region.