The strategic partnership of Zodia Custody, backed by Standard Chartered Bank, with Metaco network’s global crypto storage services aims to provide global sub-custody services for cryptocurrencies. This partnership allows Metaco to securely store client’s funds and provide a web interface for managing and initiating transfers.
“I think of this as the third generation of crypto custody, where multiple custodians are linked together,” said Julian Sawyer, CEO of Zodia Custody.
Zodia’s expansion into the digital assets custodian space includes safekeeping and settlement of digital assets, with the goal of mirroring traditional finance. The integration of different types of networks is crucial to ensure compliance in linking custodians together.
Last month, Zodia Custody expanded its services in Hong Kong in response to increasing institutional demand. The company has already established its presence in Japan, Singapore, and Australia, solidifying its position in the institutional crypto custody market.
The crypto industry has been striving to overcome issues of trust and transparency, particularly after the FTX collapse. An HSBC executive shared that there is a growing demand for custody and fund administration of digital assets from asset owners and managers.
“There has been an increasing demand for custody and fund administration of digital assets from asset managers and asset owners, as this market continues to evolve,” said Zhu Kuang Lee, chief digital, data and innovation officer at HSBC.
In 2024, HSBC plans to launch a custody service for blockchain-based assets, excluding cryptocurrencies. The financial services giant intends to partner with Metaco to provide these services.
Metaco, a Swiss-based firm, was acquired by Ripple early this year in a landmark acquisition worth $250 million. Leveraging Ripple’s scale and market strength, Metaco aims to reach clients more efficiently.
