Standard Chartered is Taking Over Full Crypto Custody Platform Zodia

Standard Chartered is planning to reabsorb the client-facing custody operations of Zodia Custody into the digital assets division of its Corporate and Investment Bank (CIB). The restructuring, which could be announced as early as this month, would leave Zodia operating only as a standalone Software-as-a-Service (SaaS) platform for custody technology, according to Bloomberg sources familiar with the matter. From Incubation to Independence to Reabsorption Standard Chartered established Zodia Custody in late 2020 through its innovation arm SC Ventures, alongside Northern Trust. The custodian later attracted minority investors, including SBI Holdings, National Australia Bank, and Emirates NBD. It now employs around 150 people across seven offices globally. Zodia had been gaining traction. In January 2026, it became the first custodian to support AUDM, an Australian dollar stablecoin. The following month, it launched Zodia Switch, enabling clients to swap assets directly within the custody platform without external pre-funding. However, Standard Chartered launched its own Luxembourg-based digital asset custody last year and rolled out institutional crypto trading separately. Today: Standard Chartered, a major global bank, announced it is launching digital asset custody in Europe.Banks are entering the room.2025 will be the year several traditional banks launch crypto services. pic.twitter.com/O7c4rBZ0yu— Hunter Horsley (@HHorsley) January 9, 2025 The overlap between parent and subsidiary made a restructuring likely. It remains unclear whether Standard Chartered has consulted Zodia’s minority shareholders. Banks Are Pulling Custody In-House The digital asset custody market currently exceeds $1 trillion and is projected to reach $7 trillion by 2035 at a compound annual growth rate of roughly 23.7%. According to the 2026 EY-Parthenon survey, 73% of institutional investors plan to increase digital asset allocations this year. That growing demand is pulling banks deeper in...