Julian Sawyer, CEO of Zodia Custody, called Standard Chartered’s acquisition of the company a milestone for mainstream finance. According to Sawyer, this move highlights the challenges traditional banks face in building secure and efficient digital asset custody on an institutional scale without adequate software and infrastructure.
Banks expand into digital asset custody
Sawyer noted that crypto assets are no longer a fringe segment in finance. The sector has reached a more mature phase as blockchain infrastructure now underpins the tokenization of real-world assets and stablecoin payments. As a result, major institutions are stepping up efforts in this space. Zodia Custody, in particular, operates as a platform providing digital asset custody solutions for institutional clients.
Mini glossary: Tokenization refers to creating a digital representation of an asset—such as stocks, bonds, fund shares, or real estate—on the blockchain. A stablecoin is a type of digital asset whose value is typically pegged to a fiat currency like the US dollar.
Julian Sawyer emphasized that blockchain-based custody is no longer limited to cryptocurrencies and is now expanding to other assets, stablecoins, and tokenization. This shift makes trust a crucial issue across the industry.
Sawyer also observed rising client interest in custodial software and infrastructure. He said that any bank looking to engage with digital assets will require the necessary technology and operational expertise to safeguard these holdings.
Acquisition timeline and new structure
According to Sawyer, Standard Chartered plans to sign the agreement to fully acquire Zodia Custody by the end of June, aiming to complete the transaction by the end of August. The purchase price and company valuation have not been disclosed.
In 2023, Zodia Custody announced a $36 million investment round led by SBI Holdings. Market forecasts estimate the company’s annual revenue at about $34.6 million, with total funding reaching around $46 million.
| Headline | Data |
|---|---|
| Signing target | End of June |
| Completion target | End of August |
| 2023 funding round | $36 million |
| Estimated annual revenue | $34.6 million |
| Estimated total funding | $46 million |
The deal will see Standard Chartered’s existing digital custody activities in Dubai, Luxembourg, and Hong Kong merged into Zodia Custody. Over the medium term, these operations are expected to be consolidated under the Standard Chartered brand, resulting in the discontinuation of the Zodia Custody name.
In parallel, a new entity called Zodia Solutions will be launched to continue offering software and infrastructure services. This initiative will have the backing of existing banking partners such as Northern Trust, Emirates NBD, and National Australia Bank.
Sawyer underscored that every bank globally will eventually take steps regarding digital assets, driving the need for technology capable of holding these assets securely.
Global race intensifies amid regulatory change
Sawyer said that institutional integration is bringing global regulatory frameworks closer together. Asked about the UK’s ambition to become a crypto hub—and the differing stances among the Bank of England, Treasury, and Financial Conduct Authority—he noted that different jurisdictions are progressing at varying speeds.
He highlighted especially rapid advances in Asia and Singapore, along with new regulations in Hong Kong and Abu Dhabi, stating that the market is transforming quickly and forcing both regulators and industry players to adapt.
Compliance drives banking-crypto convergence
While some in the industry have voiced concerns that Wall Street could crowd out others, Sawyer countered that the crypto sector is already converging with banking standards due to know-your-customer and anti-money laundering requirements.
As a result, digital asset custody, software infrastructure, and compliance will remain key areas defining cooperation between banks and crypto-focused companies in the near future.
