The latest geographical expansion for the bank-backed digital asset custodian demonstrates further commitment to evolving the ecosystem across the Asia-Pacific region
The move will allow the firm to develop further optionality for institutions, corporations and professional investors in Hong Kong’s rapidly diversifying digital asset market. The Hong Kong entry represents the fourth major geographical expansion in the region this year for the custodian, following launches in Japan, Singapore and Australia. It also marks yet another pivotal step in cementing Zodia Custody as an established player in the Asia-Pacific digital asset ecosystem.
“Moving into the Hong Kong market has always been a fundamental part of our strategy,” said Julian Sawyer, CEO, Zodia Custody. “We are committed to not just being an active participant in the digital asset ecosystem across Asia-Pacific, but to help evolve it. We can’t do this if we are not firmly established in Hong Kong, a major global digital asset hub. Through our bank-backed heritage, we have a unique understanding of the needs of institutional investors, and how to engage with the wider ecosystem to develop greater options and opportunities that work with, not against, compliance and governance. We are here to accelerate digital asset adoption.”
Hong Kong is working to establish itself as a key player in the digital asset sector, including introducing a new virtual asset regulatory regime earlier this year. Moves such as these by local authorities and the HKSAR Government have created an environment for sharp growth in digital asset adoption, with the market expected to have an annual growth rate of more than 14% and a value of US$243.9m by 2027.
Through Zodia Custody’s presence in Hong Kong, institutional investors will be able to accelerate their digital asset adoption via effective safeguarding and risk management services enabled by cutting-edge technology, bank-level compliance and governance. This includes the custodian’s market-leading Interchange offering, which provides institutions with additional layers of risk management, secure custody and insolvency protection, developed as a result of recent market turbulence.
Zodia Custody will also look to develop local partnerships to create more innovative, bespoke solutions for the Hong Kong and wider Asia-Pacific market. Past successes include the capability to offer institutional staking with Blockdaemon. More recently, Zodia Custody worked with National Australia Bank to develop SAF3 — a simple, safe, and secure real-time digital asset custody platform designed specifically for Australian portfolio managers and institutions.