Standard Chartered-backed Zodia Custody will expand its digital asset business with an entrance into the Hong Kong market.
Zodia Custody will operate in Hong Kong to offer its capabilities to institutions, corporations and professional investors in the city, according to a statement.
Zodia's shelf includes an interchange offering which provides «additional layers of risk management, secure custody and insolvency protection» to clients. In addition, the crypto custodian will also look to develop local partnerships.
«Moving into the Hong Kong market has always been a fundamental part of our strategy,» said Zodia Custody CEO Julian Sawyer.
Hong Kong Regime
The government has been pushing Hong Kong as a crypto hub in recent times with various measures, including the introduction of the new virtual asset regulatory regime in June. According to estimates, the city’s digital asset market could grow at 14 percent per annum to nearly $244 million by 2027.
«We are committed to not just being an active participant in the digital asset ecosystem across Asia Pacific, but to help evolve it. We can’t do this if we are not firmly established in Hong Kong, a major global digital asset hub,» Sawyer noted.
Global Expansion
Hong Kong marks the fourth major market that Zodia has entered this year, alongside Japan, Singapore and Australia. It has not only provided its own solutions but also co-developed others. For example, it worked with National Australia Bank to develop a real-time digital asset custody platform called «SAF3» for portfolio managers and institutions in the country.
«Through our bank-backed heritage, we have a unique understanding of the needs of institutional investors, and how to engage with the wider ecosystem to develop greater options and opportunities that work with, not against, compliance and governance,» Sawyer added.
Zodia Custody is an institutional digital asset custodian backed by shareholders including Standard Chartered, SBI Holdings and Northern Trust.
