Standard Chartered, the British multinational bank, has made a non-binding offer to acquire Zodia Custody, a provider of secure digital asset storage for banks and investment firms. According to reports from AMBCrypto, the plan will only take its final form once regulators provide approval. The acquisition represents a significant consolidation of cryptocurrency operations as the bank moves to bring crypto business in-house.
Under the proposed structure, Standard Chartered will integrate Zodia Custody with its current digital asset services while creating a new entity called 'Zodia Solutions' under SC Ventures to manage technology and infrastructure platform operations. As reported by AMBCrypto, the bank hopes to increase revenue from institutional crypto clients and cut costs by combining operations. The new entity will assist institutions in launching digital asset products and sustaining collaboration with Standard Chartered and other financial institutions.
The announcement comes as the digital asset custody market surpasses $1 trillion, with projections of $7 trillion by 2035 at a compound annual growth rate of about 23.7%. According to AMBCrypto, 'custody' ranks only second among firms' priorities for digital asset capabilities over the next two years. This move highlights traditional banks' active development of crypto infrastructure rather than passive observation of the market.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, noted that the acquisition reflects the group's continued focus on building an end-to-end Digital Assets offering and further strengthens their position as the trusted bridge between TradFi and DeFi. As reported by AMBCrypto, the move demonstrates Standard Chartered's recognition of the long-term potential of digital assets and desire for more strict oversight of crypto custody services as institutional adoption increases.
