Standard Chartered and Northern Trust Announce Zodia Custody Receives FCA Registration

LONDON–(BUSINESS WIRE)–SC Ventures, the venture capital and innovation arm of Standard Chartered, and Northern Trust, a leading asset servicing provider, today announced that Zodia Custody is now registered with the Financial Conduct Authority (FCA). The registration means that Zodia Custody now provides trading services to clients as a crypto-asset business.

Zodia Custody, a London-based institutional-grade crypto-asset custody solution, provides services to clients around the world. Zodia Custody allows institutions to securely invest in crypto-assets. Zodia Custody, developed by SC Ventures and Northern Trust, addresses institutional investors’ need for a crypto-asset custodian that understands traditional custody and meets high investor standards and expectations, while maintaining the flexibility to adapt to the ever-evolving crypto-asset market.

Zodia Custody is one of nine crypto-asset companies to have been registered with the FCA under UK money laundering regulations and started trading after a trial period.

Zodia’s registration with the FCA means the company is now supervised under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. This scheme introduced crypto-assets in January 2020 and is mandatory for all companies providing crypto-asset services in the UK.

Zodia Custody provides custody services for the two most traded crypto-assets, Bitcoin and Ethereum, with plans to expand to more crypto-assets based on customer demand.

Maxime De Guillebon, Managing Director, Zodia Custody mentioned“Zodia Custody marks an exciting development for the institutional custody market. We offer bank-grade crypto-asset custody to a standard expected of leading global custodians, having been developed with long-established best practices and regulatory compliance in mind. By leveraging the best practices of Standard Chartered and Northern Trust, we give institutional clients confidence that their assets and those of their investors are being held in a manner aligned with more traditional asset markets. This underpins our mission to increase the accessibility of the crypto-asset market to a wider institutional audience.

Alex Manson of SC Ventures said: “We believe that crypto-assets as an asset class are here to stay. We created Zodia Custody with the clear objective of serving institutional investors who want to invest in crypto-assets in a sustainable, safe and responsible way. Our aspiration is to raise the standards, grow the ecosystem and help a fledgling industry mature, become more acceptable to institutional investors and ultimately society as a whole.

Pete Cherecwich, Chairman, Corporate & Institutional Services, Northern Trust, said: “Since announcing the launch of Zodia Custody in December 2020, we have seen significant market interest in these new features. FCA registration, along with successful operational testing with pilot customers, marks an important milestone. We are delighted that Zodia’s strong capabilities are now able to support the growing number of institutional asset owners, family offices and asset managers around the world investing in this emerging asset class.

Zodia Custody further establishes Standard Chartered and Northern Trust as leaders in the development of digital asset infrastructure. Alongside its partnerships with blockchain service providers, Standard Chartered has invested in core technology provider Metaco and is working with the Bank of Thailand and the Hong Kong Monetary Authority to explore distributed ledger interoperability for transfers. cross-border funds. It recently announced a partnership with BC Group in June to establish a digital asset brokerage and exchange platform for institutional and corporate clients in the UK and Europe.

Northern Trust has a history of focused investment in digital innovation, having launched the industry’s first deployment of blockchain technology for the private equity market in 2017. Working with key clients and regulators, Northern Trust has continued to develop and implement additional capabilities on its blockchain and worked with Broadridge to make the technology available to all market players. In 2020, Northern Trust and BondEvalue partnered to complete the first transaction of a blockchain-based split bond, in conjunction with the Monetary Authority of Singapore.

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