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Zodia Custody expands global presence to Singapore

This makes Zodia Custody the first entity that is owned by, and partnered with, banks to provide digital asset custody services for financial institutions in Singapore.

Zodia Custody’s entry into Singapore comes at a pivotal moment for the business. The custodian seeks to expand across the Asia-Pacific region to cater to increased demand from institutions to provide bank-grade custody of digital assets, and to respond to existing client demand for its services in the region. 

The firm arrives at a time when local regulators are seeking to build a better-defined digital asset ecosystem, with the Monetary Authority of Singapore (MAS) recently presenting a new framework for the use of digital money, including central bank digital currencies and stablecoins. The MAS has also recently proposed draft legislation around how digital assets are safeguarded, paving the way for custodial services to become a key component of digital asset infrastructure in Singapore. As a business created on the thesis of segregation of assets, the proposal means that Zodia Custody will be well placed to serve institutional  needs for robust risk management and governance controls in the jurisdiction.

“Singapore is no stranger to digital assets, having long been a hub for financial technology innovation,” said Julian Sawyer, CEO of Zodia Custody. “But even in a mature market, challenges remain. Having been created by Standard Chartered Ventures, we have a deep understanding of institutional needs and requirements not just to enter the space, but thrive within it. As we engage with the local ecosystem, we’ll be providing market participants with cutting-edge technology, bank-level compliance, and governance to accelerate their digital asset adoption journeys.”

The last year has seen a number of partnerships for Zodia Custody, including the likes of LMAX Digital, Hidden Road, BlockFills, and Blockdaemon. Driving these collaborations has been Zodia’s market-leading Interchange offering, providing institutions with additional layers of risk management, secure custody and solvency protection. In the wake of recent market turbulence, measures such as these are essential to facilitate institutional participation in the digital asset market without compromising robust safety requirements.

The expansion is the latest example of Zodia Custody’s global growth, which in the past year has included expanding into both Japan — as part of a joint venture with SBI Digital Asset Holdings — and into Luxembourg, with the latter also seeing the firm be registered as a VASP in that market. Zodia Custody’s entry into Singapore also follows a successful US$36 million Series A raise.

Zodia Custody announces appointment as AYU UK Custodian Partner

This partnership provides Zodia Custody access to AYU, a private members’ club that connects a global community of hedge funds, family offices, and alternative investment professionals.

“We are hugely excited to be partnering with Zodia Custody over the next year. As the world of digital asset investment continues to evolve at pace, custody remains as crucial as ever. The Zodia team have not only built a first-class offering, but they have done so on the most stable of banking foundations, foundations over a century old. This unique combination is exactly what is needed right now. It will affirm the confidence of professional investors in or entering the space. We look forward to welcoming the Zodia team into the AYU community.” said Gus Morison, CEO and Founder of AYU.

“AYU has established itself as an immensely valuable global forum for connecting hedge funds, asset managers, family offices and institutional allocators,” said Gerry Afentakis, Head of European and MENA Sales at Zodia Custody. “We are delighted to be named AYU’s digital asset custody partner and to be able to provide the AYU community with the option of gold-standard, bank-grade custody for their digital capital, with a best-in-class product suite to safely access every corner of the digital asset ecosystem.”

Custody in the Time of MiCA

Crypto custody in the time of MiCA

This article was written in partnership with XReg Consulting.

The EU’s Markets in Crypto-assets Regulation (MiCA) officially came into force on 29 June 2023 and will begin to apply for issuers of stablecoins in June 2024 and for other crypto-asset service providers (CASPs) by the end of 2024.

This new regime brings several services within the scope of regulation, including the provision of custody of crypto-assets. This is defined in MiCA as the safekeeping of crypto-assets on behalf of clients or, more specifically, the means of access to such crypto-assets.

TradFi custody vs. Crypto custody

Crypto-asset custodians, in the same manner as traditional financial (TradFi) custodians, are responsible for the safekeeping of assets, but the two differ in some important ways. 

Unlike traditional financial assets, crypto-assets have no centralised entity acting as a clearing house. Additionally, safekeeping is provided for the private keys which control an individual or institution’s access to its crypto-assets. These private keys can be stored through either ‘hot’ or ‘cold’ wallets. Hot wallets are an online means of storage, and cold wallets have no direct access to the internet and are usually stored on physical devices like hard drives or, in certain cases, simply written down or printed on paper. Typically, cold wallets allow for a higher level of control given their offline nature but tend to be slower when it comes to usability and processing speeds. They do not serve institutional requirements, especially with regard to auditing.

It is critical for an institution with crypto-assets in the custody of a service provider to be able to prove ownership or control over their private keys. This will usually take the form of a trust arrangement or a certificate of beneficial interest in the private keys to the crypto-asset. 

As it stands, the regulatory landscape is also different for traditional custody and crypto-asset custody. In a number of jurisdictions, technical advancements have superseded legal principles where regulatory frameworks for crypto are not yet in place. This has allowed crypto custodians fewer regulatory burdens and more legal freedoms than custodians in traditional finance. 

Non-custodial wallets vs. exchange wallets

There are also different types of crypto-asset custody. Self-custody, also referred to as non-custodial wallets, allows individuals to store and manage private keys without the help of a third party. Non-custodial wallets range from physical devices to paper documents or mobile apps. This type of custody puts users in charge of their own security and access arrangements.

Alternatively, exchanges may custody their users’ private keys directly on an exchange platform. While this allows for direct accessibility, individuals rely on the exchange platform to ensure the protection of their crypto-assets. There are security risks to consider in addition to counterparty risk and potential conflicts of interest associated with offering both custody and trading services to clients.

Some specialist third-party solutions, which could be software (tech) providers or custodians, minimise these risks by using hot or cold wallets that offer 24-hour availability. These providers can offer greater IT security measures, are auditable and remove any central points of compromise that can be prevalent in exchange wallets or self-custody.

MiCA vs. the rest of the world

In the absence of dedicated regimes, the provision of custody of crypto-assets for most of the EU is currently brought under the scope of each Member State’s AML regime (under 5AMLD), which does not comprehensively address prevalent risks associated with crypto-asset custody. Until now, crypto custodians have only been able to operate in the EU jurisdictions in which they have obtained a regulatory licence or registration.

The MiCA regulations will harmonise the EU’s regulatory stance on crypto-asset custodians and introduce a passporting regime for service providers to access the entire EU market. By providing a clear and detailed regulatory regime, MiCA sets up the EU as a favourable destination for businesses looking to offer or engage in crypto-asset custody.

Other jurisdictions have also brought crypto-asset custody services within the scope of their regulatory regimes. For example, Hong Kong has set out prescriptive guidelines covering the custody of crypto-assets while the Virtual Assets Regulatory Authority (VARA) in Dubai has included a dedicated rulebook for custody in their comprehensive crypto regulatory framework. In the midst of this first-mover arbitrage, other jurisdictions, such as the UK and Singapore, are closely following these developments and harnessing industry insights to create their own practical frameworks. 

Custody under MiCA

Custody requirements set out in MiCA can be divided into two parts. The first involves the procedures that an issuer of stablecoins must take in relation to the custody of their reserve assets, which may include both crypto-assets and financial instruments such as securities. MiCA requires that the custodian of these reserves must be a legal person different from the issuer and that this should be undertaken by either a CASP, a credit institution under the EU’s Capital Requirements Directives, or an investment firm under MiFID II.

The second part details the controls that must be in place when CASPs provide custody of crypto-assets on behalf of clients. CASPs must ensure that crypto-assets are not used for their own account and are always held unencumbered. A client agreement must also be in place that includes a custody policy, a description of the security systems in place, and the fees charged. CASPs providing custody must also maintain a register of positions opened in the name of each client and provide clients with a statement of their position for each crypto-asset recorded in their name at least every three months. 

Choosing a custodian

Clearly, selecting the right custodian is an important decision for any crypto-asset business. When looking for the right provider, companies should consider the following:

  • The custody arrangements in place i.e., the percentage of assets that are kept in either hot, cold, or warm wallets (a hybrid used to store only a portion of the client assets for accessibility purposes). Companies may require flexibility in this regard and a tailored solution allowing access for regular transactions or operational purposes may be more desirable than a fully offline or set percentage arrangement.
  • Legal treatment over private keys. Companies should seek assurances in relation to ownership and operational control of the private keys they are handing over to the custodian. 
  • Security and access to assets. Companies should understand the process for depositing, withdrawing, and transferring their assets as well as the custodian’s security practices, infrastructure, and track record in protecting client assets from unauthorised access. 
  • Governance, risk & compliance approach. Companies should seek clarity on the custodian’s internal processes, including how they conduct internal audits if they provide regular reports on the status of the assets held under custody. There should also be sufficient disaster recovery and contingency plans to ensure business continuity in the face of unexpected events.
  • End-to-end service offering. Companies should assess whether the custodian is able to meet all of their needs. Responsive and reliable client support and ancillary services such as staking, reporting and analytics may also be key considerations.  
  • Regulatory authorisation and reputation. Companies should check if the custodian is regulated by reputable regulatory authorities that have the capacity to supervise and that they can demonstrate a track record of responsibility in handling client assets.
Conclusion

MiCA brings within scope the requirement to be authorised if providing custody and administration of crypto-assets on behalf of clients. In certain instances, it is clear that there is a requirement to outsource custodial activities to a separate legal entity. If, for example, you are an issuer of stablecoins, your reserve assets, whether they are made up of crypto-assets or traditional assets, need to be held in custody by a CASP, an authorised credit institution or an investment firm.

MiCA allows for exchange platforms or other crypto-asset businesses to provide their own custodial services directly to clients. Alternatively, using trusted providers specialising in crypto-asset custody services can bring a host of benefits including security assurances and fully segregated wallets whilst also solving some of the typical usability issues usually associated with cold wallets by offering 24-hour real-time access and availability.

About XReg Consulting

XReg Consulting is a public policy and regulatory affairs consultancy specialising in crypto. We help governments formulate sound policy, regulators supervise effectively, public authorities build capacity, and virtual asset businesses thrive and follow the rules. Our team of former regulators and policy advisors is located throughout Europe, the Caribbean and South America. For more information, follow us on LinkedIn or visit our website at www.xreg.consulting.

About Zodia Custody

Zodia Custody is the leading institution-first digital asset custodian by Standard Chartered, in association with Northern Trust and SBI Holdings. It enables institutional investors around the globe to realise the full potential of the digital asset future – simply, safely, and without compromise. Through the combination of leading technology, custody, governance and compliance, Zodia Custody satisfies the complex needs of institutional investors. For more information, follow us on LinkedIn or visit our website at www.zodia.io

Zodia Custody Appoints Jonathan Hugh as Chief Financial Officer

Zodia Custody Appoints Jonathan Hugh as Chief Financial Officer.

As part of his role, Jonathan will be responsible for overseeing the bank-owned custodian’s financial operations, helping to enforce Zodia Custody’s global growth as the company expands into new markets.

Hugh joins the Zodia Custody team from GSR, the liquidity provider and crypto market maker, where he held the same position and led the firm through significant growth. Prior to this, Jonathan held various senior positions with ED&F Man, Noble Group and Centrica.

“Jonathan is an excellent addition to our growing team, and brings a real wealth of experience and expertise in the digital assets space,” said Julian Sawyer, CEO of Zodia Custody. “He is joining the team at an incredibly exciting moment as we position ourselves for significant scale, while building the market infrastructure that allows all institutions to truly harness the exciting opportunities that digital assets offer.”

“Zodia Custody has a rich heritage in championing a unique, institution-first approach to digital asset custody,” said Jonathan Hugh, CFO of Zodia Custody. “I look forward to taking on my next challenge, being part of this ambitious team and contributing to our strategic growth.”

Zodia Custody Achieves Great Place to Work-Certification™!

Zodia Custody, a leading institution-first digital asset custodian by Standard Chartered in association with Northern Trust and SBI Holdings, has been officially accredited as a Great Place to Work-Certified™ organisation.

This Certification™ is a significant achievement and is testament to the relentless drive of the remarkable team members at Zodia Custody and their unwavering commitment to providing clients with robust custody solutions.

Using validated employee feedback gathered by Great Place to Work®, the global authority on workplace culture, with its rigorous, data-driven For All™ methodology. The accreditation confirms that at least 65% of employees have a consistently positive experience at Zodia Custody.

“We are thrilled to be Great Place to Work-Certified™!” says Julian Sawyer, CEO at Zodia Custody. 

“It is a reflection of the trust our clients place in us and the trust we place in our employees. They are the backbone of our success and have been instrumental in establishing Zodia Custody as a trusted partner and a leading institution-first custodian of digital assets.”

Laura Drake, Head of People at Zodia Custody, says, “As we celebrate this achievement, we also recognise that this is not the culmination of our journey but a significant milestone on the path of continuous improvement. We will continue to invest in our people, nurture their growth, and ensure Zodia Custody remains the best place to work in the digital asset industry”, says Laura Drake, Head of People at Zodia Custody.

“We congratulate Zodia Custody on achieving their Certification™,” said Benedict Gautrey, Managing Director of Great Place to Work® UK. “Organisations like Zodia Custody, which put employee experience at the heart of their business, gain their employees’ trust and, in turn, are truly able to build a great workplace culture that delivers outstanding business results.”

Apply to work at Zodia Custody: https://apply.workable.com/zodia-custody/

Zodia Custody and Hidden Road collaborate on off-exchange settlement solution

Zodia Custody, a leading institution-first digital asset custodian by Standard Chartered in association with Northern Trust and SBI Holdings, is today announcing its collaboration with Hidden Road Partners, the global credit network for institutions, to provide secure access to digital assets for institutions.

As a result of the partnership, institutional clients will be able to access both prime brokerage and custody services from a single, secure provider via Zodia Custody’s Interchange solution, with prime brokerage provided by Hidden Road. Interchange provides independent, effective safeguarding of digital assets, while also reducing the counterparty risk exposure for Hidden Road’s clients. This means that clients will retain full control of their assets, while ensuring greater protection through settlement obligations.

The collaboration between Hidden Road—the only firm offering prime brokerage to hold an FCA investment firm license alongside an FCA digital asset firm registration—and Zodia Custody (the FCA registered Crypto custodian) is indicative of the vision from both on the future direction the digital asset ecosystem needs to take. Both firms are committed to developing the infrastructure surrounding digital assets to further encourage institutional participation. A significant part of this work is in ensuring that firms operating in the ecosystem don’t just subscribe to regulations, but actively show that they are meeting requirements.

The combination of Zodia Custody’s Interchange product alongside Hidden Road’s prime brokerage offering further enables institutions to participate  in the digital asset market, while benefiting from additional layers of risk management and secure custody. In the wake of recent market turbulence, measures such as these are essential to facilitate institutional participation in the market without compromising robust safety requirements. 

“This work with Hidden Road is a crucial milestone towards building the market infrastructure institutions need to enter digital assets at scale while maintaining the rigorous standards of security, regulation and compliance,” said Julian Sawyer, CEO of Zodia Custody. “Partnering with Hidden Road means institutional investors are now able to leverage Interchange alongside the expertise of a like-minded provider offering prime brokerage to gain greater exposure to the many opportunities digital assets present, in a safe and secure way.”

“Hidden Road remains committed to providing our clients with a range of tools, partners and integrations to support trading across traditional and digital assets,” commented Michael Higgins, Global Head of Business Development at Hidden Road. “A sound regulatory framework is what institutions need most when it comes to trading digital assets, and bringing together our two FCA-regulated offerings will support the maturation of market structure in digital assets. Hidden Road’s collaboration with Zodia Custody adds value to our credit network, as we share a focus on security, compliance and risk management.”

BlockFills Integrates with Zodia Custody to Fulfil Institutional Demand for FCA-Regulated Digital Market-Access

London, UK—29 June 2023—BlockFills, a pioneer innovator in the digital asset sector for liquidity provision, and cutting-edge SaaS tech, has announced their integration with digital asset servicing provider Zodia Custody to provide secure, registered digital asset market-access to its customers worldwide; fulfilling the demand for compliance-approved, best-in-class digital asset custody solutions on an FCA-registered platform. 

The partnership, equipping BlockFills with access to the UK-domiciled, FCA-registered digital asset custody platform, will designate BlockFills as a trusted component of the lifecycle for institutions that may require regulated custody and higher levels of regulatory compliance. Additionally, Zodia Custody clients will acquire access to BlockFills’ unparalleled digital asset technology and liquidity across spot, derivatives and credit markets.

“Upper-echelon financial institutions, funds, and family offices have increasingly requested that BlockFills integrate with a UK-domiciled, FCA registered custody provider with cutting-edge technology,” said Nick Hammer, co-founder, and CEO of BlockFills. “The formation of this relationship is our answer to our clients looking for a highly regulated and secure custody solution.” 

Patrick Zielbauer, BlockFills’ Managing Director of Sales, continues: “The combination of Zodia Custody’s focus on loss prevention, proof of ownership, and segregation of duty with the established custody approach championed by Standard Chartered and Northern Trust is the solution our clients have asked for.”

“We are elated to be partnering with BlockFills to provide institutions with a safe passage into the digital asset market; it is essential to offer both the highest levels of security and compliance,” said Julian Sawyer, CEO of Zodia Custody. “Through Zodia Custody, BlockFills’ customers will access cutting-edge, digital asset-native technology including cold-storage security with 24/7, instant availability alongside bank-level compliance and governance. They will also benefit from full safeguarding and segregation mirroring the UK CASS principles. The addition of a market participant of BlockFills’ pedigree will enhance our objective of encouraging the institutional adoption of digital asset markets.” 

Founded in 2018, BlockFills has propelled itself to be one of the fastest growing crypto liquidity and technology providers globally. They are poised to further their position as an asset to their over 1100 institutional clients across 50 countries, in arming their patrons with the tech, risk mitigation, deep liquidity, 24/7 market-access, and white glove support they need to safely launch or scale their digital asset business.

Zodia Custody, an institutional digital asset servicing company based in London, offers services to clients across the globe – enabling institutions to invest safely and securely in digital assets. As a subsidiary of Standard Chartered with backing from Northern Trust and SBI Holdings, Zodia Custody satisfies institutional investors’ needs for a digital asset servicing provider that meets investors’ high standards and expectations, whilst maintaining the flexibility required to adapt to the ever-changing digital asset market.

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About Zodia Custody

Zodia Custody is the leading institution-first digital asset custodian by Standard Chartered, in association with Northern Trust and SBI Holdings. It enables institutional investors around the globe to realise the full potential of the digital asset future – simply, safely, and without compromise. Through the combination of leading technology, custody, governance and compliance, Zodia Custody satisfies the complex needs of institutional investors.

Zodia implements the requirements of the 5AMLD and applies the same standards as Standard Chartered relating to AML, FCC, and KYC. It implements the requirements of the FATF Travel Rule. Zodia Custody Limited is registered in the UK with the FCA as a digital asset business under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Zodia Custody (Ireland) Limited is registered with the Central Bank of Ireland as a VASP under Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended). Zodia Custody (Ireland) Limited was established in Ireland in August 2021. Zodia Custody Limited is registered with the CSSF in Luxembourg as a Virtual Asset Service Provider in accordance with article 7-1 (2) of the law dated 12 November 2004 on the fight against money laundering and terrorist financing, as amended.

Website: https://www.zodia.io

About BlockFills

BlockFills is a disruptive financial technology firm dedicated to the provision of end-to-end solutions for global crypto currency market participants. The Company has successfully built and deployed a cutting-edge multi-asset technology platform that solves major liquidity fragmentation problems in the marketplace. The platform provides price discovery, price aggregation, electronic order matching, smart order routing and trade reconciliation solutions for institutions in the digital spot, derivatives, and credit markets. In addition, BlockFills provides software-as-a-service (SaaS) solutions that simplify all aspects of the trade lifecycle for institutions in the sector.

To reach BlockFills regarding business opportunities, please email [email protected], or for more information, please visitwww.blockfills.com.  

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Zodia Custody Launches Institutional Staking in Partnership with Blockdaemon

Zodia Custody Launches Institutional Staking in Partnership with Blockdaemon

Partnership will enable “Staking 2.0” — compliant, secure staking for institutional investors

London, UK and New York, USA — 06 June 2023 — Zodia Custody, a leading institution-first digital asset custodian by Standard Chartered in association with Northern Trust and SBI Holdings, has partnered with Blockdaemon, the leading institutional-grade blockchain infrastructure company, to become the first bank-owned and FCA-registered custodian to offer staking services to institutional clients. 

Proof-of-Stake consensus mechanisms represent a large portion of the world’s total blockchain industry, with growing institutional interest. The combined offering from both Zodia Custody and Blockdaemon will represent an evolution of current approaches to staking for institutional investors. Dubbed “Staking 2.0”, the partnership has developed a model that provides greater assurances for institutions through seamless security measures across both the Blockdaemon and Zodia Custody infrastructures. 

Backed by Standard Chartered, Northern Trust and SBI Holdings, Zodia Custody brings an established digital asset custodian approach to the market and combines that with the agility of a fintech company. In partnership with Blockdaemon, Zodia Custody will be able to offer innovative staking solutions to meet the uncompromisable standards of institutional investors through a single platform that enables clients to get staking rewards. Zodia Custody will ensure that the “Staking 2.0” service is clearly priced, to provide complete transparency to their institutional investors.

For institutional investors using Zodia Custody’s services, automated staking and reward operations will be enabled from day one of the service going live, scaled on an institutional level and with full automation to minimize the risk of manual errors. The service has been designed to be as frictionless as possible to ensure it can be quickly enabled to maximize rewards. Through Blockdaemon, it will also integrate a tried and tested ETH validator exit process — bolstered by Blockdaemon’s record of 99.9% validator uptime — to enable institutions to manage their ETH liquidity efficiently. 

“Staking 2.0 makes the process of receiving staking rewards simpler and more convenient, all while lowering the risks for both institutions and their customers,” said Konstantin Richter, CEO and Founder of Blockdaemon. “Our strong partnership with Zodia allows stronger security, automation and simplification of the process to participate in staking, truly accelerating web3 innovation.”

“This partnership with Blockdaemon is how we are evolving staking specifically for institutions. This is staking, without compromise,” said Julian Sawyer, CEO of Zodia Custody. “By leveraging Blockdaemon’s expertise, together we are not just meeting the needs of institutional investors, but also developing new opportunities for market participants to yield results.” 

Zodia Custody’s mission to better develop the infrastructure and ecosystem for institutional participation in digital assets is reinforced by Blockdaemon’s security first approach to blockchain infrastructure, which includes four layers of risk mitigation, 100% slashing insurance guarantee, smart contract audits and ISO 27001 Certification. Through “Staking 2.0”, both Zodia Custody and Blockdaemon pledge to consistently adhere to the highest industry standards of compliance and security.

Download as a PDF here

For further information, please contact:

Rich Went

Gallium Ventures

+44 (0) 7745 496 065

[email protected] 

LMAX Digital Partners with Zodia Custody to provide institutional-grade trading and custody solutions for CoinShares

London and New York — 17th May, 2023 — Zodia Custody, a leading institution-first digital asset custodian by Standard Chartered in association with Northern Trust, and LMAX Digital, the regulated institutional crypto currency exchange operated by LMAX Group, today announce a collaboration to deliver institutional-grade trading infrastructure and custody services for the European leading Alternative Asset Manager specialising in digital assets, CoinShares.

The collaboration between three leading institutional participants in the digital assets ecosystem comes at a time when the separation of exchange execution from custody, clearing and settlement functions is at the forefront of customer demands, as investors look to reduce concentration risk and implement more robust measurements to maintain security of assets. 

CoinShares will benefit from a fully segregated custodian solution by leveraging Interchange, the market-leading, off-exchange settlement product from Zodia Custody and connectivity to LMAX Digital, a regulated exchange venue which operates with best-of-breed security, compliance, KYC and anti-money laundering policies and procedures. Zodia’s Interchange provides independent effective safeguarding of digital assets whilst reducing the counterparty risk exposure for CoinShares, enabling the firm to retain full control of its assets and complete protection through settlement obligations. 

As the pace of tokenisation gathers momentum and digital assets increasingly converge with traditional capital markets, so demand for regulated trading infrastructure and efficient price discovery within the industry grows. LMAX Digital is a leading institutional spot crypto currency exchange and a primary price discovery venue for global market participants. 

“CoinShares’ DNA promotes enhanced security and transparency through collaboration with regulated market players. This joint effort with Zodia Custody and LMAX Digital is aligned with our long-term strategy. We are committed to shape a reference standard for digital asset management. This underscores the importance of our duty of care for our stakeholders. We are expecting the rest of the industry to follow through.” said Jean-Marie Mognetti, CEO, CoinShares.

As Europe’s premier Alternative Asset Manager specialising in digital assets, the move is part of CoinShares’ mission to provide access to a trusted, registered, and best-in-class product suite for all investors. The collaboration to implement Interchange also reinforces CoinShares’ advocacy for stronger digital asset regulation, particularly in providing products that adhere to both existing regulations and similar regulatory best practices in traditional financial markets. 

“The digital asset market needs to evolve. Investors are demanding greater assurance and rigour across the entire ecosystem. Interchange is our answer to how we can help the market respond to those concerns,” said Julian Sawyer, CEO, Zodia Custody. “We have listened to the needs of institutional investors and have delivered a solution that combines digital asset-native technology with bank-level compliance and governance. Our collaboration with LMAX Digital and CoinShares is indicative of how the digital asset ecosystem can mature — namely, through collaboration to develop an infrastructure that is fit for purpose.”

“In the wake of recent industry events, the segregation of crypto market services and effective corporate governance and controls is more important for institutions than ever. By bringing together our regulated exchange infrastructure with the regulated custodial services of Zodia Custody, we are able to offer a robust, institutional-grade solution that benefits clients such as CoinShares, whilst building a better market structure for all participants in the digital assets ecosystem. At LMAX Digital we are determined to remain at the very forefront of innovation and technological development to serve the rapidly evolving needs of our institutional clients,” added Jenna Wright, Managing Director, LMAX Digital.  

The collaboration with LMAX Digital and CoinShares marks the start of an upcoming period of growth for Zodia Custody’s Interchange product. The digital asset custodian is currently working with several key strategic partners to implement Interchange, as part of a move from institutions and exchanges alike to mature digital asset infrastructure. 

For further information, please contact:

Rich Went

 Gallium Ventures

+44 (0) 7745 496 065

[email protected]

Introducing the Zodia Professional Advisors Network

The Zodia Professional Advisors Network (ZPAN)
is a space for those who want to help realise the potential of the digital asset future.

At Zodia, we believe a mature ecosystem with serious actors is required for digital assets to grow and thrive as an asset class. ZPAN aims to combine the traditional and digital asset worlds and to empower one another to fearlessly embrace the digital asset future. Through a series of events, blogs, webinars and roundtables, we will work with like-minded firms and professionals to facilitate important conversations, boost knowledge sharing and encourage collaboration to build that ecosystem. If you would like to join our network of fellow professional advisors, then please do get in touch below:

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