Zodia Custody has secured a payment institution license in Luxembourg to expand its EU stablecoin services. This comes as Standard Chartered's acquisition of the firm is set to complete by August 2026. Zodia's custody business will be integrated into the bank, while a new entity, Zodia Solutions, will spin off to handle software. The move highlights a growing trend of major banks acquiring specialized technology to manage digital assets.
Zodia Custody Luxembourg payment license
- ▪The license enables Zodia Custody to provide regulated custody and transfer services for Electronic Money Tokens (stablecoins) across the European Union
- ▪Zodia Custody secured a payment institution license from Luxembourg's Commission de Surveillance du Secteur Financier
- ▪Zodia Custody stated its combined licenses remove structural barriers and counterparty risks associated with fragmented service providers
- ▪The Luxembourg approval adds to Zodia Custody’s existing MiCA license and other authorizations in the UK, UAE, Hong Kong, Singapore, and Australia
Standard Chartered acquisition timeline
- ▪Standard Chartered's non-binding offer to acquire Zodia Custody was accepted on May 18, 2026
- ▪Standard Chartered's full acquisition of Zodia Custody is targeted for signing by the end of June 2026 and completion by the end of August 2026
- ▪The Zodia Custody brand will be phased out in the medium term and its operations will fold into Standard Chartered
- ▪As part of the acquisition, Zodia Custody's regulated activities will be integrated into Standard Chartered's digital asset custody business
Digital asset custody infrastructure demand
- ▪The digital asset industry is maturing, with an increasing focus on real-world asset tokenization and stablecoin payments
- ▪CEO Julian Sawyer described the acquisition as a "major validation" that legacy banks need specialized software for institutional-grade digital asset custody
- ▪Zodia Custody CEO Julian Sawyer stated that every bank will soon need the technology to hold digital assets
- ▪Zodia Custody is backed by shareholders including Standard Chartered, Northern Trust, SBI Holdings, Emirates NBD, and National Australia Bank
Zodia Solutions entity spin-off
- ▪A new entity named Zodia Solutions will be created to manage the software and infrastructure side of the business after the acquisition
Global digital asset regulatory landscape
- ▪CEO Julian Sawyer stated the crypto industry is moving towards banking due to compliance requirements like Know Your Customer (KYC) and Anti-Money Laundering (AML)
- ▪Zodia Custody CEO Julian Sawyer noted that governments are adopting digital asset regulations at different paces globally
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