Standard Chartered signs definitive deal to acquire Zodia Custody

Standard Chartered has signed definitive agreements to acquire Zodia Custody, a regulated crypto custodian. The deal depends on regulatory approval and closing conditions. The bank said so in an announcement on Wednesday, October 21.

What the parties signed

According to Cointelegraph, Standard Chartered will buy 100% of Zodia Custody UK Limited. It is the parent of Zodia's regulated operating entities in Singapore, Hong Kong, Australia, Luxembourg and the United Arab Emirates. The deal covers the legal entities that hold permissions to safekeep digital assets.

Zodia's software and professional-services assets do not move to the bank. They will be transferred to Zodia Solutions, which will become an independent entity within SC Ventures. It will provide digital asset infrastructure for financial institutions.

How the deal developed

The previous step came in May, when Zodia's shareholders accepted Standard Chartered's non-binding offer. Signing definitive agreements moves the arrangement from intent into a legally binding phase, though closing is still some way off.

According to unofficial reports, the bank began considering folding Zodia's crypto custody business into its corporate and investment banking division as early as April. That puts the gap between the idea and signed documents at about six months.

Where Zodia's business ends up

After closing, Zodia's custody core will be integrated into the bank's existing Securities Services unit. That unit already serves institutional clients with safekeeping and settlement for traditional securities. Digital assets will now join that list.

• Regulated entities in Singapore, Hong Kong, Australia, Luxembourg and the UAE come under the bank's control.
• The crypto custody business enters Securities Services.
• Software and service assets go to Zodia Solutions under SC Ventures.

The parties gave no closing date. Everything depends on decisions by regulators in each jurisdiction where Zodia's entities operate.

Crypto in the bank's strategy

The Zodia purchase continues a series of Standard Chartered steps in crypto. In September the bank launched spot trading in Bitcoin and Ethereum for institutional clients in the UAE. A licensed custody base gives the bank safekeeping for assets its clients can already buy.

Whether the bank gets every approval it needs will show at the next stage. For now, only the signing of the agreements and the list of companies moving to the bank are officially confirmed.