Zodia Custody, a crypto custody firm owned by London-based bank Standard Chartered, has launched its services in Hong Kong.
Phased Approach
According to a CNBC report, Zodia will roll out services in Hong Kong in a “phased approach.”
“At first, it will seek to provide services for Hong Kong clients in a limit set of crypto assets,” the report stated.
Launched in 2020 as a Standard Chartered subsidiary with Northern Trust as a minority partner, Zodia is a digital asset custodian that provides financial institutions with a secure way to store their crypto assets. In April, Zodia raised $36 million in a funding round led by Japan’s SBI Holdings, now the custody provider’s second-largest shareholder.
Meanwhile, Zodia’s entry into Hong Kong marks its latest expansion into the Asia-Pacific region. Over the past few months, the platform has launched its services in Japan, Singapore, and Australia.
However, Zodia’s CEO, Julian Sawyer, mentioned that this would be the company’s last stop in the region.
“What we’re seeing is there are absolutely clients in all of those four markets who want to do things. We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side,” he said.
Sawyer touted Hong Kong as a suitable market for the company due to the region’s growing institutional interest in crypto.
Hong Kong’s Crypto Push
The latest development comes as Hong Kong is increasingly showing support for crypto despite Mainland China’s blanket ban on the asset class.
Earlier this year, Hong Kong’s Securities and Futures Commission (SFC) commenced a digital asset regulatory regime, allowing crypto firms to apply for licenses and offer regulated services to customers in the region.
According to CNBC, Zodia is already in discussion with the SFC and Hong Kong Monetary Authority to become regulated in the region.
So far, only two industry firms, OSL Digital, and Hash Blockchain, have secured licenses from the SF
