Standard Chartered-backed Zodia Custody aims to raise $50m in funding round

Crypto custodian Zodia Custody aims to raise $50 million from investors to support its plans to expand into new territories and expand its product line.

Standard Chartered’s crypto custody subsidiary Zodia Custody plans to raise $50 million in a round of financing, Zodia Custody Chief Executive Julian Sawyer said, according to a Nov. 4 report from Bloomberg.

Sawyer stated that the crypto custodian wants to use these funds to expand its operations to previously untapped territories and add to its growing list of products.

Moreover, Zodia explained that although Custody is backed by a number of major financial firms, it hopes to partner with a more diverse pool of investors, particularly firms working in the payment and tokenization sectors.

Sawyer claims that Architect Partners, a consulting firm focused on crypto, will aid efforts to raise more funding for Zodia Custody, a startup that launched last month. However, the Bloomberg report noted that Architect Partners did not respond to a request for comment.

Recently, Komainu Holdings, a bank-backed crypto custodian that is a crypto custodian subsidiary of Japanese bank Nomura, stated that it expects to close a financing round in the coming weeks.

On October 22, Komainu merged with Singapore-licensed rival Propine Holdings in a bid to expand its operations in Singapore and other parts of Asia.

Besides Standard Chartered, other major banking institutions have also moved into crypto or expressed interest in doing so by creating crypto custody subsidiaries. These players include some of the world’s largest custodian banks, such as Bank of New York Mellon, State Street and Citigroup.

Founded in 2021, Zodia Custody is described as the crypto custody initiative of Standard Chartered and Northern Trust. In April 2023, Zodia managed to raise $36 million in a round of financing led by SBI Holdings, followed by National Australia Bank and other firms.

Although Zodia Custody is not Standard Chartered’s first crypto initiative, the bank was also the first to join the GDF Patron Board, an alliance of organizations working together to strengthen custody, payment certainty and brokerage standards across crypto and digital assets. sphere.