Standard Chartered to absorb Zodia Custody after signing acquisition deal

Standard Chartered has signed definitive agreements to acquire full ownership of digital asset custodian Zodia Custody that will bring the company's regulated crypto custody operations into the bank's existing securities services business.

Summary

• Standard Chartered has signed definitive agreements to acquire 100% of Zodia Custody, although the transaction remains subject to regulatory approvals and customary closing conditions.
• The bank plans to integrate Zodia's regulated custody operations into its Securities Services division, while its software and professional services business will operate separately under SC Ventures.
• The agreement follows several months of negotiations after Zodia's shareholders and noteholders accepted a nonbinding offer in May.
• Standard Chartered has continued expanding its institutional crypto services, with plans for custody operations in Singapore and cryptocurrency trading services for eligible clients in the UAE.

According to an October 21 announcement from Standard Chartered, its subsidiary Standard Chartered I H Limited will acquire 100% of Zodia Custody Limited, which oversees regulated operating entities across Singapore, Hong Kong, Australia, the United Arab Emirates, and Luxembourg.

The acquisition remains subject to regulatory approvals and customary closing conditions, while the bank has not disclosed the financial terms or provided a revised completion date.

Once the transaction is completed, Zodia's regulated custody operations will become part of Standard Chartered's Securities Services division, where the bank already provides digital asset custody services to institutional clients.

Standard Chartered said the combination would allow it to consolidate its existing custody businesses and bring traditional securities services and digital asset custody under a more integrated institutional offering.

The agreement follows several months of negotiations after Zodia's shareholders and noteholders accepted a nonbinding acquisition offer in May, although the transaction has taken longer than initially expected to reach the definitive agreement stage.

Standard Chartered acquisition will separate Zodia's custody and software businesses

Under the agreed structure, Standard Chartered will take over Zodia's regulated custody business, while its software and professional services operations will be transferred to a separate company called Zodia Solutions.

The new entity will operate independently under SC Ventures, Standard Chartered's venture capital and innovation arm, and will continue providing digital asset infrastructure to banks and other financial institutions.

Standard Chartered will remain among its customers, alongside other financial institutions that use Zodia's technology to develop and operate digital asset services.

The bank identified several investors supporting Zodia Solutions, including Northern Trust, NAB Ventures, SBI Ventures, Emirates NBD, Further Ventures, Investcorp-linked Zodia Investments, and SC Ventures-owned Zodia Holdings.

According to the announcement, Zodia Solutions will provide technology and professional services that financial institutions can use to establish custody and other digital asset operations without developing every component internally.

Craig Perrin has been named CEO of Zodia Solutions, while Richard Clark is leading Zodia Custody following the departure of former CEO Julian Sawyer in September.

Clark previously served as Zodia Custody's chief revenue officer before taking over the leadership position.

Standard Chartered said existing custody clients would continue receiving services as usual during the transaction, with no disruption expected from the planned integration.

Months of negotiations and missed completion targets

Standard Chartered first announced on May 18 that Zodia Custody's shareholders and noteholders had accepted its nonbinding offer, setting out plans to absorb the regulated custody operations into its banking business.

The parties initially expected to finalize definitive agreements by the end of June, with the acquisition targeted for completion before the end of August.

However, the transaction remained unfinished beyond those dates, and the October announcement confirms that the parties have now reached the binding agreement stage.

Standard Chartered has not provided details explaining the delay or identified which regulatory approvals remain outstanding.

The bank originally helped establish Zodia Custody alongside Northern Trust in 2020, with the business subsequently attracting investment from other financial institutions.

As crypto.news previously reported, the proposed acquisition was already part of the bank's plans to consolidate its institutional digital asset custody operations.

Zodia Custody has developed a regulated presence across several financial centers, with its existing operations covering institutional cryptocurrency safekeeping and related services.

In June, the company secured a Luxembourg license from the Commission de Surveillance du Secteur Financier, allowing it to provide regulated stablecoin custody and transfer services across the European Union.

The payment institution authorization complemented Zodia's existing Markets in Crypto Assets license, covering services for institutional customers handling electronic money tokens and other crypto assets.

Standard Chartered's crypto services continue to grow

Standard Chartered has continued developing its own digital asset services while working toward the acquisition, with several announcements concerning custody and cryptocurrency trading during October.

On October 8, the bank announced plans to introduce institutional crypto custody in Singapore, with the service intended for institutional and accredited investor corporate clients.

The bank expects to introduce the service by the end of 2026, although it has not identified the cryptocurrencies that will be supported or provided a specific launch date.

Standard Chartered already provides digital asset custody services in markets including the UAE, Luxembourg, and Hong Kong, where its operations serve institutional customers.

Separately, the bank recently introduced Bitcoin and Ether trading for eligible professional investor clients in the UAE, allowing them to buy and sell cryptocurrencies through their existing banking relationships.

The service uses an integrated arrangement for trading, custody, and settlement, with Zodia Markets providing liquidity and execution support.

Standard Chartered has said it intends to develop its digital asset operations alongside its established banking services, covering custody, trading, and tokenization for institutional and eligible professional clients.

In its October 21 statement, Ying Ying Tan, the bank's global head of Securities Services and Digital Assets, said the Zodia acquisition would strengthen its custody portfolio and support institutional access to regulated digital asset services.

Richard Clark said the combination would bring Zodia's specialist custody capabilities together with Standard Chartered's international banking operations.

The bank confirmed that existing Zodia Custody customers would continue receiving services as usual, while completion of the acquisition remains dependent on the required regulatory approvals.

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