Standard Chartered signs deal to buy Zodia Custody

Standard Chartered has signed definitive agreements to buy all of Zodia Custody, a move that would bring the custodian’s regulated crypto safekeeping business into the bank. The Standard Chartered announcement says the deal still needs regulatory approval and customary closing conditions to be met.

Standard Chartered I H Limited will acquire 100% of Zodia Custody Limited, the parent company of Zodia’s regulated operations in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. The Block reported that the companies did not disclose financial terms.

What happens to Zodia’s custody business?

After completion, Zodia’s regulated digital asset custody business will join Standard Chartered’s existing custody activities within Securities Services. Custody means holding and safeguarding assets for clients. Standard Chartered says the integration will consolidate its digital asset custody businesses and support a combined offering for traditional and digital securities.

The deal follows the acceptance of Standard Chartered’s non-binding offer in May. That earlier offer was not the definitive agreement announced on October 21. The acquisition is not complete, and the bank has not set out a closing date in its announcement.

Where will Zodia’s software business go?

Zodia will separate its digital asset software and professional services business and transfer the related assets to Zodia Solutions, an independent entity to be established under SC Ventures, Standard Chartered’s venture arm. The new company will provide infrastructure to financial institutions, including Standard Chartered, as they build digital asset services.

Standard Chartered named NAB Ventures, Northern Trust, SBI Ventures, Further Ventures and Emirates NBD among the investors expected to support Zodia Solutions. The full list in the announcement also includes Zodia Investments, linked to Investcorp, and Zodia Holdings, owned by SC Ventures.

Will the deal change service for Zodia clients?

Standard Chartered says it does not expect disruption from the transaction and that existing Zodia custody clients will continue to be serviced as usual. That statement covers the period around the deal; the announcement does not give further details about any later changes to client arrangements.

References

• Standard Chartered announcement — sc.com
• reported that the companies did not disclose financial terms — theblock.co