Standard Chartered has agreed to acquire the custody business of Zodia Custody, the digital asset custodian it launched through its SC Ventures unit in 2020, folding the regulated entity into its existing Financing and Securities Services division.
The bank said in a statement on May 18 that Zodia's shareholders and noteholders have accepted its non-binding offer, with completion subject to regulatory approval.
The transaction consolidates two businesses that had been operating in parallel. Standard Chartered has built out its own internal digital asset custody service and introduced spot Bitcoin and Ethereum trading for institutional clients over the past two years, creating growing overlap with Zodia's external-facing platform.
Under the deal, Zodia's client-facing custody operations will be merged into SC's existing structure, with the bank citing revenue and cost synergies as the driver.
The more consequential structural move is the spinout. Zodia Custody's infrastructure platform business will be separated into a new independent entity called Zodia Solutions, which will sit under SC Ventures and continue to sell bank-grade digital asset infrastructure to financial institutions – including Standard Chartered itself. The separation preserves the platform's commercial independence and its ability to serve other banks, while removing the overlap that had developed between the two custody operations. SC Ventures said Zodia Solutions would be supported by a number of bank investors, including existing Zodia Custody backers.
Standard Chartered's SC Ventures held just under 70% of Zodia Custody ahead of the deal. The remaining stake was divided among minority investors including Northern Trust, which co-founded the business with SC Ventures in 2020, as well as Emirates NBD, National Australia Bank, and SBI Holdings, which put $36 million into Zodia in 2023.
"Digital asset custody is increasingly being delivered within banking environments," Julian Sawyer, CEO of Zodia Custody, said in a statement. "We have seen strong and accelerating demand for our Solutions platform, as institutions look for trusted, bank-grade infrastructure that enables them to design, deliver and grow digital asset capabilities at scale."
The consolidation fits neatly into a broader efficiency push at the bank. Bloomberg reported separately this week that Standard Chartered plans to cut back-office roles as part of its drive to improve returns – a signal that SC is tightening its operating structure at the same time as it expands its digital assets footprint. Absorbing Zodia's custody business rather than running it alongside an internal equivalent is consistent with that logic.
Existing Zodia Custody clients are not expected to experience any disruption as a result of the transaction.
