YEREVAN (CoinChapter.com) — Zodia Custody, an institutional crypto custody platform co-owned by British bank Standard Chartered, Japanese SBI Holdings, and Northern Trust, has expanded its crypto services to Hong Kong.
Institutional Demand For Crypto Custody Solutions Jump
The move appears in response to the rising crypto appetite in Hong Kong. Zodia CEO Julian Sawyer claims growing demand from institutions for crypto custody solutions prompted them to expand to Hong Kong.
In addition, Sawyer credited Hong Kong’s crypto-friendly stance as a reason behind their expansion.
“The local government sees digital assets as the future and wants Hong Kong to be a central hub. This proactive attitude aligns with Zodia’s expansion aims.”
he said.
Before Hong Kong, Zodia had been on an expansion spree across Asia. For instance, the crypto custody company recently started offering services in Japan, Singapore, and Australia. Sawyer notes that these Asia countries have offered institutional clients wanting to engage with their crypto custody platform.
Crypto ETF Buzz
Zodia’s expansion plans come on the heels of growing buzz around a potential Spot Bitcoin ETF approval in the US. Trade pundits believe the approval will boost the Bitcoin market size by at least $600 billion in the coming years.
ETFs increase the need for custodial solutions, given they issue shares backed by physical assets. In Bitcoin’s case, ETF funds will require crypto custody companies like Zodia to handle the cryptocurrencies digitally.
That is primarily because traditional companies typically find it difficult to manage private keys associated with crypto wallets.
It’s noted that Zodia will introduce its services in phases in Hong Kong, initially supporting a select group of cryptocurrencies. The firm has entered discussions with prominent regulatory bodies in the region for crypto compliance.
That includes the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority.
Zodia’s journey began when Standard Chartered publicized its intentions to create an institutional custodial platform for cryptocurrencies in 2020.
Officially launched in 2021, Zodia made headlines in April 2023 by securing $36 million in a Series A funding round, spearheaded by SBI Holdings.
Currently, the platform offers support for 38 cryptocurrencies, encompassing major ones like Bitcoin and Ether, as well as popular stablecoins such as Tether and USD Coin.
