SC Ventures, the innovation and ventures unit of Standard Chartered, and Northern Trust, a provider of asset servicing, have entered into an agreement to launch Zodia Custody, an institutional-grade custody solution for cryptocurrencies.
Zodia is expected to begin operations in London in 2021 and will provide custody services for Bitcoin, Ethereum, as well as XRP, Litecoin, and Bitcoin Cash, which collectively account for some 80% of the total assets traded on the top cryptocurrency exchanges, equivalent to $395 billion.
Maxime De Guillebon, Zodia’s CEO, said in a statement: “Zodia was established to address the need for a cryptocurrency custodian that truly understands custody. We combine the risk management, compliance, governance and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies. By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability.”
Pete Cherecwich, president of Corporate & Institutional Services at Northern Trust, said in a statement: “The introduction of digital custody backed by the know-how and experience of global banks is a breakthrough in the evolution and support of institutional cryptocurrency markets. Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments.”
Zodia Custody is in the process of registering with the FCA under UK Money Laundering Regulations and will apply standards that are equivalent to the custody of traditional securities.