Standard Chartered signs deal for 100% of Zodia Custody

Standard Chartered signed definitive agreements on Oct. 21 to acquire 100% of Zodia Custody Limited, the parent of Zodia’s regulated operating entities in five markets. The bank said the deal would bring Zodia’s custody business into its Securities Services activities, subject to regulatory approvals and customary closing conditions.

According to Standard Chartered’s announcement, the entities operate in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. The bank did not disclose financial terms in its statement; The Block also reported that the acquisition remains subject to approvals and closing conditions.

What will Standard Chartered acquire?

Standard Chartered I H Limited will acquire all of Zodia Custody Limited, according to the bank. After completion, Zodia’s regulated digital asset custody business will be integrated into Standard Chartered’s existing digital asset custody activities within Securities Services.

The bank said the integration is intended to consolidate its digital asset custody businesses and support a unified offering for institutional clients. No completion date was given in the announcement.

What happens to Zodia’s software business?

Zodia will separate its digital asset software and professional services business and transfer the related assets to Zodia Solutions, an independent entity to be established under SC Ventures, the bank said. Zodia Solutions will provide infrastructure to financial institutions launching and expanding digital asset services, including Standard Chartered.

Standard Chartered named NAB Ventures, Northern Trust, SBI Ventures, Further Ventures, Emirates NBD, Investcorp and SC Ventures among the investors supporting Zodia Solutions. The bank said existing Zodia Custody clients would continue to be serviced as usual during the transaction.

Sources

• Standard Chartered’s announcement — sc.com
• The Block also reported — theblock.co