Zodia, the institutional cryptocurrency custody platform jointly owned by British banking giant Standard Chartered, Japanese financial services company SBI Holdings, and Northern Trust, is set to expand its services into the thriving crypto market of Hong Kong. The decision to enter the Hong Kong market is a response to the increasing demand for cryptocurrency services from institutional investors in the region, according to Zodia CEO Julian Sawyer.
Sawyer emphasized that the demand for cryptocurrencies in Hong Kong is primarily being driven by institutional players, making it an ideal fit for Zodia’s specialized crypto custody services. He also noted that the regulatory stance on cryptocurrencies in Hong Kong aligns with Zodia’s long-term ambitions, as the local government views digital assets as a pivotal component of the future financial landscape and aims to position Hong Kong as a cryptocurrency hub.
This expansion into Hong Kong marks another significant step in Zodia’s aggressive growth strategy across the Asian region. In recent months, the platform has been expanding its services to Japan, Singapore, and Australia, capitalizing on the increasing interest from institutional clients across these markets.
Zodia will introduce its services to Hong Kong gradually, initially offering support for a limited selection of cryptocurrency assets. The company is also in talks with Hong Kong’s regulatory bodies, the Securities and Futures Commission and the Monetary Authority, with the goal of achieving regulatory compliance within the jurisdiction. This regulatory step is seen as essential for building trust and attracting institutional investors who require a compliant and secure environment for their cryptocurrency holdings.
Standard Chartered, one of the founding partners of Zodia, first announced its plans for an institutional custodial platform for cryptocurrencies, including Bitcoin, in late 2020. Launched in 2021, Zodia has made substantial progress, raising $36 million in a Series A funding round led by SBI Holdings in April 2023. The platform currently supports a diverse range of 38 cryptocurrencies, including Bitcoin and Ethereum, as well as popular stablecoins such as Tether and USD Coin.
With Zodia’s expansion into Hong Kong, the platform is poised to provide robust and secure cryptocurrency custody solutions to meet the growing needs of institutional investors in the region, aligning with the broader adoption of digital assets in the global financial landscape.
