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.”