Standard Chartered to Buy Zodia Custody, Spin Off Software Arm

Standard Chartered has signed definitive agreements to acquire 100% of digital asset custodian Zodia Custody, subject to regulatory approvals. Its software and professional services business will become a standalone company called Zodia Solutions.

The bank announced the agreements on Oct. 21, upgrading a nonbinding offer made in May. It did not disclose the purchase price or a completion date. The transaction also requires approval in the jurisdictions where Zodia Custody operates.

Zodia Custody’s regulated business will join Standard Chartered’s Securities Services division. The custodian operates in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. It already provides custody infrastructure for some of the bank’s digital asset activities.

Zodia Solutions will operate under SC Ventures, Standard Chartered’s innovation arm. It will provide technology and professional services to banks and other financial institutions developing digital asset operations, including custody systems. Standard Chartered is expected to be among its customers.

The new company’s backers will include NAB Ventures, Northern Trust, SBI Ventures Asset, Q Studio, Emirates NBD, Zodia Investments and Zodia Holdings, which is owned by SC Ventures.

In the announcement, Ying Ying Tan, Standard Chartered’s global head of securities services and digital assets, described the acquisition as an expansion of the bank’s digital asset custody business. Craig Perrin, chief executive of Zodia Solutions, said the company would provide technology for institutions launching and expanding digital asset services.

Standard Chartered has launched RLUSD custody on the XRP Ledger and established institutional spot trading in Bitcoin and Ether in the United Arab Emirates. Zodia Custody has supported custody-related infrastructure for several of the bank’s digital asset activities.

Richard Clark, Zodia Custody’s chief executive, described institutional custody as an expanding part of banking. Clark took over in September after Julian Sawyer stepped down.

Zodia’s shareholders and noteholders initially expected definitive agreements by the end of June and completion before the end of August. The agreements were signed in October. The acquisition remains subject to regulatory clearance and other customary closing conditions.

Existing Zodia Custody clients will continue receiving services during the transition. The parties have not announced a completion date or the formal launch date for Zodia Solutions.