Standard Chartered and Zodia Custody: Expanding Cryptocurrency Horizons

Standard Chartered’s Bold Move

In the latest twist in the world of finance, Standard Chartered has ramped up its cryptocurrency game. The bank’s custody subsidiary, Zodia Custody, has successfully secured a whopping $36 million in a series A funding round. Talk about a cash infusion! This funding surge was spearheaded by Japanese financial giant SBI Holdings, who has now snagged the position of Zodia’s second-largest shareholder.

Who Owns Zodia? Spoiler Alert: Standard Chartered Still Has the Upper Hand

Before this injection of funds, Zodia was operating under the exclusive backing of Standard Chartered and Northern Trust, with the former clutching a towering 90% stake. Even after this latest round, Standard Chartered maintains its majority share, a solid grip, indeed. CEO Julian Sawyer emphasized that raising external funding is part of the bank’s typical strategy, stating, “It is part of our strategy to be bank-backed, and all the good things that that brings.” Let’s face it: if you’re going to ride the crypto wave, having a sturdy bank behind you doesn’t sound half bad.

The Rise of Staked Ether: A New Frontier

With fresh funds at its disposal, Zodia is set to broaden its horizons, particularly in the realm of supported cryptocurrencies. This includes diving into the waters of staked Ether (ETH). Sawyer mentioned that following substantial changes to the Ethereum protocol, client interest in staking services has seen a noticeable upswing. Who wouldn’t want to earn rewards by taking advantage of the latest crypto craze?

Geographic Expansion: Eyes on the Middle East

Alongside enhancing its service offerings, Zodia is looking to extend its reach beyond its current bases in Europe and Asia. The firm is particularly keen on opportunities in the Middle East. Unfortunately, as much as Zodia might want to dip its toes in the U.S. market, regulatory uncertainties have them holding back. Sawyer aptly pointed out, “There’s a massive lack of clarity regarding what cryptocurrencies should be considered securities in the United States.” We’re all left to wonder when that clarity will arrive and keep our fingers crossed for some enlightenment in the next year or so.

The Journey So Far: Zodia’s Resilience

Since its launch in 2021, Zodia Custody has showcased remarkable resilience, especially in the face of the 2022 crypto bear market and the unfortunate downfalls of major players like FTX and Celsius. With support for a total of 38 cryptocurrencies and a variety of ERC-20 tokens, Zodia is not just surviving—it’s making waves!

Final Thoughts: What Lies Ahead?

The funding news comes right on the heels of Zodia’s expansion into the Japanese market via a partnership with SBI Holdings. As the landscape of institutional crypto services evolves, Zodia appears poised to ride the wave of growth and opportunity, one *staking* opportunity at a time.