British Banking Giant Enters The Crypto Asset Business In Hong Kong

The British banking giant Standard Chartered, co-owned by Japanese SBI Holdings and financial firm Northern Trust, is entering the cryptocurrency asset business in the crypto-friendly city of Hong Kong.

Zodia, a corporate cryptocurrency custody platform co-owned by Standard Chartered, Japanese SBI Holdings, and financial firm Northern Trust, is extending its services to Hong Kong, according to an article published on CNBC on October 29.

Julian Sawyer, CEO of Zodia, highlighted that Zodia Custody will start offering services in Hong Kong in response to the growing demand from institutions. Sawyer noted that the cryptocurrency demand in Hong Kong is being created by institutional investors rather than retail customers. He stated that this aligns with Zodia's cryptocurrency custody activities and is in line with Zodia's goals due to Hong Kong's stance on cryptocurrencies. The local government views digital assets as the future and aims for Hong Kong to become a hub.

Zodia is adding one more to its Asian operations, which it began in Japan, Singapore, and Australia in recent months with the launch in Hong Kong. According to the report, Zodia will gradually start its activities in Hong Kong and initially offer support for a limited number of cryptocurrencies. The company is also reported to be in talks with the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority for regulation in the financial region.

Standard Chartered had announced its plans to launch an institutional custody platform for cryptocurrencies such as Bitcoin in late 2020. Zodia, which became operational in 2021, raised $36 million in a Series A funding round led by SBI Holdings in April 2023. The platform supports a total of 38 cryptocurrencies, including Bitcoin, Ether, and stablecoins like Tether (USDT) and USDC.