Zodia Custody, the crypto security firm owned by British banking giant Standard Chartered, is expanding its services to Hong Kong. This move follows the company’s recent announcement to expand into Singapore, marking its continued stride into the Asia-Pacific region.
Institutional Demand Drives Hong Kong Expansion
The CEO of Zodia, Julian Sawyer, highlighted the unique landscape of Hong Kong, where the demand for cryptocurrency services is primarily driven by institutional players. Unlike many other markets, retail customers play a minimal role in Hong Kong’s crypto industry.
Sawyer emphasized Hong Kong’s progressive stance toward digital assets, noting the government’s and regulators’ recognition of digital assets’ potential and their efforts to position Hong Kong as a thriving hub in the industry.
Zodia envisions establishing a strong presence in the Asia-Pacific region, with their expansion into Hong Kong representing a strategic move to tap into the institutional crypto custody space.
Expansion Plans and Regulatory Framework
Zodia Custody has been rapidly expanding its services across the Asia-Pacific region. Besides Japan, Singapore, and Australia, Hong Kong is now the final destination in their journey to meet the demands of clients in all four markets.
Despite China’s strict anti-crypto policies, Hong Kong has taken a different approach. The Hong Kong Securities and Futures Commission (SFC) introduced a regulatory framework for digital assets earlier this year, allowing companies to operate in a regulated manner.
Zodia’s expansion will be phased, initially providing services for Hong Kong clients with a limited set of crypto assets. The company is actively engaging with the SFC and the Hong Kong Monetary Authority to explore the possibility of regulatory approval within the financial district.
“Hong Kong’s embrace of crypto assets showcases its progressive mindset and desire to establish itself as a leading hub in the crypto industry,” said Julian Sawyer, CEO of Zodia Custody.
This expansion into Hong Kong solidifies Zodia Custody’s position as a significant player in the institutional crypto custody space, leveraging its ownership partnerships with renowned institutions like Northern Trust and Japan’s SBI Holdings.
