May 20, 2026
By Shubhii Verma
Standard Chartered is preparing to bring the crypto custody operations of Zodia Custody, its majority-owned subsidiary, directly under the bank’s own digital asset infrastructure, according to a report by Bloomberg. The move reflects the bank’s long-term strategy to internalize its institutional crypto services and streamline overlapping operations that have developed over the past few years.
Standard Chartered Moves to Consolidate Institutional Crypto Operations
The bank has made a non-binding offer to acquire Zodia Custody’s crypto custody business, and the proposal has reportedly been accepted by other shareholders and noteholders of the firm. Once the transaction is completed, Zodia Custody will continue to function as a standalone software-as-a-service (SaaS) platform, while its core custody activities are absorbed into Standard Chartered’s in-house framework.
Zodia Custody’s Role in Institutional Digital Assets
Zodia Custody was established in 2020 as a joint venture between SC Ventures, Standard Chartered’s innovation and investment arm, and Northern Trust. The firm positioned itself as an institutional-grade digital asset custodian at a time when large financial institutions were still cautiously exploring the crypto space. In 2023, Zodia raised $36 million to expand its services and was reportedly in discussions to secure an additional $50 million funding round as recently as late 2024.
However, Standard Chartered has been simultaneously building its own crypto custody capabilities in parallel. In January 2025, the bank secured a Luxembourg license under the European Union’s Markets in Crypto-Assets (MiCA) regulations, allowing it to offer crypto custody services directly. Later that year, it launched its own branded custody unit, creating an overlap in infrastructure and services with Zodia Custody.
Banks Are Increasingly Bringing Crypto Services In-House
This dual development made consolidation increasingly likely. Integrating Zodia’s custody operations into Standard Chartered’s broader corporate and institutional banking division is seen as the logical next step in the bank’s digital asset strategy. Earlier reports from The Block in April had indicated that such an integration was under consideration.
By bringing these operations together, Standard Chartered aims to simplify its structure, reduce duplication, and strengthen its position in institutional crypto custody. The move also signals growing confidence among traditional banks in managing digital assets within their own regulated frameworks rather than relying on separate ventures or subsidiaries.
