Zodia, the cryptocurrency custody platform jointly owned by major financial institutions, including Standard Chartered, SBI Holdings from Japan, and Northern Trust, is set to broaden its services in the dynamic financial landscape of Hong Kong.
According to a CNBC report on October 29, Zodia Custody’s expansion into Hong Kong is a strategic response to the surging demand for cryptocurrencies within the institutional sector.
Julian Sawyer, the CEO of Zodia, emphasized that Hong Kong’s crypto appetite is primarily fueled by institutional investors, a key alignment with the platform’s core competency in crypto custody. He also noted that Hong Kong’s regulatory stance on cryptocurrencies complements Zodia’s ambitions, as the local government views digital assets as the future and envisions Hong Kong as a pivotal hub in this domain.
Zodia’s foray into the Hong Kong market comes as part of its concerted efforts to bolster its presence in Asia. In recent months, the company has aggressively expanded its operations, opening up services in Japan, Singapore, and Australia. Julian Sawyer stated,
“What we’re seeing is there are indeed clients in all four of these markets eager to engage in institutional cryptocurrency activities. Moreover, we’ve observed a strong interest from potential clients beyond these jurisdictions, indicating a robust demand for institutional cryptocurrency services.”
The report indicates that Zodia will adopt a gradual approach in introducing its services to Hong Kong, with an initial focus on supporting a select range of cryptocurrency assets. The company is reportedly in active discussions with the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority, exploring regulatory compliance within the financial district.
As previously reported, Standard Chartered unveiled its plans to establish an institutional custodial platform for cryptocurrencies, such as Bitcoin (BTCUSD), back in late 2020. Launched in 2021, Zodia successfully secured $36 million in a Series A funding round, with leading participation from SBI Holdings in April 2023.
The platform currently boasts support for 38 cryptocurrencies, including notable assets like BTC and Ether (ETH), as well as stablecoins like Tether (USDT) and USD Coin (USDC).