Standard Chartered Bank plans to roll out its cryptocurrency custody services for institutional investors by 2021
SC Ventures, the innovation and ventures arm of Standard Chartered, has teamed up with Northern Trust, a leading provider of asset services, to launch a cryptocurrency custody service by next year. In a press release yesterday, Standard Chartered announced that the custody service would be called Zodia Custody.
The Zodia Custody Implementation Agreement must be approved and registered by the UK Financial Conduct Authority (FCA) and other relevant regulatory agencies. With Zodia, institutional investors can store the leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).
Standard Chartered introduces the service due to the growing institutional interest in cryptocurrencies. The UK bank stated that institutional investors currently only account for 9% of investments in cryptocurrencies. However, the percentage will increase significantly in the years to come, and Zodia Custody will help institutional investors store their crypto assets.
According to the press release, Zodia will have the agility of a fintech firm, as well as the traditional custody policies and expertise of a bank, to provide a high-standard infrastructure to meet the needs of institutional investors. The Zodia platform is continuously updated to adapt to the changing needs of the market and those of customers.
Maxime De Guillebon, CEO of Zodia, is delighted with the start of the custody service. He explained that Zodia was created to meet the need for a crypto administrator who understands custody services. “We combine the risk management, compliance, governance and security approach of a regulated financial institution with the latest innovation in crypto asset and key management technologies“, he added.
In his comment, Alex Manson of SC Ventures stated that the bank was still determined to rewire the DNA in banking. Standard Chartered has been providing custody services to institutional investors for 160 years. The creation of Zodia will do a lot of good for the cryptocurrency sector as it provides sustainable, safe and responsible services.
Institutional investors around the world have entered the cryptocurrency sector in record numbers. Cryptocurrency funds have received over $ 12.5 billion from institutional investors so far this year. This is because more and more institutional investors are viewing Bitcoin as a reliable investment vehicle. Zodia’s entry could encourage more institutional investors, particularly in the UK, to invest in a wide range of cryptocurrencies.