Standard Chartered mulls bringing parts of Zodia Custody in-house

Standard Chartered is reviewing whether to bring parts of its joint venture Zodia Custody into its own custody operations, according to people familiar with the matter.

The review is at an early stage and no final decisions or timetable have been announced. Bank executives are examining which services, technology and staff currently run by Zodia could be transferred into Standard Chartered’s existing custody business.

Zodia Custody was created by Standard Chartered with other financial firms to provide custody and related services for institutional digital-asset holders. The platform has operated separately to offer secure storage and support for crypto assets to institutional clients.

Officials are weighing operational, regulatory and commercial factors, including whether selected client-facing functions, back-office systems or technology should be moved into the bank. Options under consideration reportedly include carving out specific business lines while leaving other functions within the joint-venture structure.

Any transfer would require regulatory approvals in the jurisdictions where Zodia and Standard Chartered operate. The process could involve reassigning staff and integrating custody systems. Industry participants say custody solutions for institutional crypto clients combine technology platforms, operational controls and compliance frameworks, which can complicate transfers between entities.

The review follows a period in which banks and financial institutions adjusted their digital-asset plans in response to shifting client demand and regulatory expectations. Standard Chartered has been developing digital-asset capabilities across trade finance and tokenization initiatives and is reassessing Zodia’s role within that effort.

Background: Zodia Custody launched to give institutional investors a bank-aligned option for storing crypto assets with segregated controls and governance aligned to traditional custody standards. The venture was one of several industry efforts to link traditional banking infrastructure with the crypto custody market for institutional participants.