Standard Chartered is advancing plans to acquire the crypto custody business of Zodia Custody, its majority-owned subsidiary, according to reports. The non-binding offer has received preliminary approval from Zodia’s other shareholders and noteholders, marking a significant step in the bank’s digital asset strategy.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stated that integrating Zodia’s custody infrastructure directly into the bank’s existing crypto operations would enable expansion into new markets, specifically the United Kingdom and Australia. The move aims to offer regulated digital asset custody services to institutional clients under the bank’s corporate and investment banking division.
Under the proposed deal structure, Zodia Custody would be split. The custody business would be absorbed into Standard Chartered, while the technology infrastructure arm would be spun off as an independent software-as-a-service company named Zodia Solutions, led by current CEO Julian Sawyer. This separation allows Standard Chartered to directly control regulated custody while maintaining a distinct technology layer for third-party clients.
Zodia Custody was launched in 2020 as a joint venture between Standard Chartered’s innovation arm SC Ventures and Northern Trust. Minority shareholders include SBI Holdings and Emirates NBD, whose stakes would be bought out in the acquisition. Financial terms have not been disclosed, and the deal remains subject to regulatory approvals and final negotiations.
The acquisition reflects a broader trend of traditional banks embedding digital asset services. Institutional demand for regulated custody has accelerated, and Standard Chartered joins peers like BNY Mellon and Deutsche Bank in building or acquiring such capabilities. The UK and Australia expansions highlight the geographic diversification of institutional crypto adoption beyond the US and Asia.
