Standard Chartered bank is planning to launch its cryptocurrency custody services for institutional investors by 2021
SC Ventures, the innovation and ventures arm of Standard Chartered, has partnered with Northern Trust, a leading provider of asset servicing, to launch a cryptocurrency custody service by next year. In a press statement yesterday, Standard Chartered revealed that the custody service would be called Zodia Custody.
The deal to launch Zodia Custody is subject to approval and registration with the UK Financial Conduct Authority (FCA) and other relevant regulatory bodies. When launched, Zodia will allow institutional investors to store the leading cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).
Standard Chartered is rolling out the service due to the rising institutional interest in cryptocurrencies. The British bank stated that institutional investors currently account for only 9% of investments in cryptocurrencies. However, the percentage will grow significantly over the coming years, and Zodia Custody will be available to help institutional investors store their crypto assets.
According to the press release, Zodia will have a fintech company’s agility and the traditional custody principles and expertise of a bank, thus, allowing it to provide a high standard infrastructure to meet the need of institutional investors. The Zodia platform will continuously be updated to adapt to the market’s changing needs and those of the clients.
Maxime De Guillebon, Chief Executive Officer of Zodia, is excited about the custody service launch. He stated that Zodia was created to address the need for a crypto custodian 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 technologies“, he added.
In his comment, Alex Manson of SC Ventures stated that the bank remains committed to rewiring the DNA in banking. Standard Chartered has been providing custody services to institutional investors for 160 years. The establishment of Zodia will do a lot of good for the cryptocurrency sector as it will provide sustainable, safe and responsible services.
Institutional investors worldwide have been entering the cryptocurrency sector in record numbers. Cryptocurrency funds received over $12.5 billion so far this year from institutional investors. This comes as more institutional investors now consider Bitcoin as a reliable investment tool. Zodia’s entry into the market could encourage more institutional investors, especially in the UK to invest in a wide range of cryptocurrencies.