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.