The world has seen the emergence of yet another digital asset enthusiast in the form of Zodia Custody, a new arm of Standard Chartered. Zodia Custody is paving the way for financial institutions in Singapore by extending its digital asset custody services to them, in response to the mushrooming demand for secure, bank-grade digital asset custody solutions in the Asia-Pacific region.
Zodia Custody’s inception in 2021, via a cooperation between Standard Chartered and Northern Trust, reflects a rising fascination for digital currency among leading financial institutions. Furthermore, Zodia is part owned by SBI Digital Asset Holdings, the crypto branch of the multinational Japanese SBI Bank.
The customer base of Zodia Custody is a diverse mix, from hedge funds to prime brokers, asset managers and high-frequency traders. This promising venture has hitched its wagon on Standard Chartered’s strong reputation in Singapore, marrying the bank’s expertise in risk management, operational resilience, and information security with a thirst for innovation.
As per recent data from a market research firm, Statista, 19% of Singaporeans own crypto. This statistic sets Singapore ahead of the global average of 15%. Crypto companies in Singapore continue to witness phenomenal investor interest and funding growth.
The ‘Lion City’ has triumphantly held its ground as a fintech hotspot despite witnessing some high-profile casualties in the sector. Digital currencies and blockchain technology spearheaded the fintech investment drive in 2022. Investment data from KPMG’s recent Fintech Pulse report indicate that, despite a modest 21% decline year-over-year, Singapore raked in $1.2 billion in crypto investments for the year.
Zodia’s recent geographical expansion into Abu Dhabi highlights how strategic positioning is paramount for financial institutions seeking to ride the digital asset wave. The entry of entities like Zodia Custody into burgeoning markets signals not just opportunities for financial institutions, but raises questions too – such as how far can this trend go, will governments continue to welcome crypto services, and what risks do these services pose to established financial ecosystems.
The unveiling of Zodia Custody’s services suggests there are banks that are willing to push the boundaries while frequent doubts about crypto’s validity persist. Whether or not this innovative stride will influence other institutions to follow suit in this digital asset marathon is something we’ll have to wait and see. This launch emphatically signals that, for now, crypto’s roots in our financial world continue to deepen.
Source: Cryptonews
