Zodia Custody backed by Standard Chartered to raise 50M dollars
Zodia Custody, a custodian of digital assets backed by Standard Chartered, is in talks to raise $50 million in a new funding round to support its geographic expansion and diversify its product offerings.
More funding will support Zodia Custody plans to enter new markets
According to Bloomberg News on November 4, Zodia Custody is working towards expanding its global operations with the fresh round of funding as competition intensifies in the expanding crypto safekeeping market.
Zodia Custody Chief Executive Officer Julian Sawyer told Bloomberg News in an interview that the custodian is seeking to raise $50 million from investors to support its plans to expand its product line and enter new markets.
With the support of multiple financial institutions, Zodia anticipates reaching a wider range of investors, including those involved in tokenization and payments, Sawyer stated. According to reports, the firm launched the funding initiative in October in partnership with Architect Partners, a crypto-focused advisory firm.
Zodia participates in important financial markets
In recent years, financial institutions from all over the world have shown a growing interest in crypto custody services. Since its launch in 2021, Zodia has grown to become a significant global cryptocurrency custody platform, expanding its footprint in major financial centers such as London, Dublin, Luxembourg, Sydney, Hong Kong, Singapore, and Tokyo.
Standard Chartered raises $36M for its crypto platform Zodia
This new funding initiative follows Zodia's April 2023 $36 million Series A funding round, which was led by Japanese financial giant SBI Holdings. According to reports, Standard Chartered still held a 90% stake in Zodia after the raise. Northern Trust and National Australia Bank are additional backers.
Zodia supported 38 cryptocurrencies as of October 2023, including Bitcoin, Ether, and stablecoins like USD Coin (USDC) and Tether's USDt (USDT).
Additionally, the report said the company plans to use the raised funds to expand geographically beyond its current markets in Asia and Europe. The company plans to avoid the US because of regulatory uncertainty, but it is especially interested in opportunities in the Middle East.
In June, Zodia Custody and 21Shares announced their collaboration to offer custody services for crypto exchange-traded products (ETPs) that are physically backed in Switzerland and Europe. At the time, Sawyer stated that the partnership's objective was to provide investors in 21Shares with additional security and regulatory compliance layers.
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