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Standard Chartered has partnered with asset servicing firm Northern Lights to launch an institutional crypto custody service called Zodia Custody, according to a press release published on Dec. 9.
- The bank’s innovation and ventures arm, SC Ventures, will work with Northern Light to launch the service, with the first pilot for the service possibly launching by the end of the year
- Assets that will initially be supported are Bitcoin (BTC), Ethereum (ETH), XRP, Litecoin (LTC) and Bitcoin Cash (BCH), which reportedly account for most of client demand
- Registered with the UK’s regulatory body the Financial Conduct Authority (FCA) full operations are expected to begin in London 2021
- Noting the strong annual growth of the asset class but the comparatively low involvement of institutional investors, Zodia is described as a way of onboarding more institutional players
- In Jul. 2020, Standard Chartered participated in an $18 million funding round for Metaco, another institution-focused crypto custodian
- Standard Chartered is also a part of the Contour trade finance platform, an infrastructure project by a consortium of banks
- Spain’s second largest bank, BBVA, also announced that it would begin offering crypto custody services in 2021, suggesting a growing trend in the banking industry
