Standard Chartered Explores Integrating Zodia Custody into Corporate Banking Division

Standard Chartered is reportedly seeking to fully acquire its crypto custody subsidiary Zodia Custody and merge parts of it into the bank's corporate division, with an announcement potentially coming as soon as April 2026. Zodia Custody, originally established as a 2020 joint venture with Northern Trust and now backed by minority shareholders including Emirates NBD, National Australia Bank, and SBI Holdings, employs around 150 people across seven global offices and raised $18.5 million in July 2025. The restructuring comes as Standard Chartered launched its own Luxembourg-based digital asset custody services in January 2025 and introduced spot bitcoin and ether trading for institutional clients. The move reflects intensifying competition in crypto custody as traditional banks like State Street, BNY Mellon, and Morgan Stanley expand their presence amid improving regulatory clarity in the U.S. and Europe.

Standard Chartered's Acquisition Plans for Zodia Custody

• ▪Zodia Custody began custodianship of emeralds in June 2025
• ▪Standard Chartered's restructuring plan for Zodia Custody could be announced as soon as April 2026
• ▪Zodia Custody raised $18.5 million in a Series A funding round in July 2025
• ▪Zodia Custody was originally established in 2020 as a joint venture between Standard Chartered and Northern Trust
• ▪Zodia Custody employs around 150 people across seven offices in London, Dublin, Luxembourg, Singapore, the UAE, Sydney and Hong Kong
• ▪Standard Chartered is considering allowing Zodia Custody to continue operating as a separate software-as-a-service business for cryptocurrency custody
• ▪Standard Chartered is considering merging Zodia Custody's crypto custody business into one of Standard Chartered's investment bank divisions that provides similar services
• ▪Zodia Custody's minority shareholders include Northern Trust Corp., Emirates NBD Bank PJSC, National Australia Bank Ltd., and SBI Holdings Inc.
• ▪Standard Chartered PLC is reportedly seeking to fully acquire Zodia Custody Ltd.

Standard Chartered's Expanding Digital Asset Operations

• ▪Standard Chartered introduced crypto trading for institutional clients in summer 2025
• ▪Standard Chartered became one of the first global banks to offer spot bitcoin and ether trading
• ▪Standard Chartered launched its own digital asset custody services out of Luxembourg in January 2025

Growing Competition in Institutional Crypto Custody

• ▪Morgan Stanley recently named Coinbase and BNY Mellon as custodians for a proposed bitcoin ETF
• ▪State Street, BNY Mellon and Morgan Stanley are expanding their presence in crypto custody

Perspective of Zodia Custody minority shareholders

• ▪Northern Trust's position as Zodia Custody's original joint venture partner from 2020 may be eliminated through Standard Chartered's full acquisition
• ▪Emirates NBD Bank, National Australia Bank, and SBI Holdings could lose their minority stakes in Zodia Custody if Standard Chartered completes the full acquisition

Perspective of Zodia Custody employees

• ▪Zodia Custody's 150 employees across London, Dublin, Luxembourg, Singapore, UAE, Sydney and Hong Kong face potential restructuring under Standard Chartered's integration plans
• ▪Zodia Custody's software-as-a-service business model could be preserved as a separate operation even if the custody business is merged into Standard Chartered

Perspective of Competing crypto custody providers

• ▪Standard Chartered's integration of Zodia Custody represents consolidation pressure in the increasingly competitive crypto custody battleground among financial institutions