Standard Chartered has agreed to acquire the crypto custody operations of its majority-owned subsidiary Zodia Custody as part of an expansion of the bank’s digital asset business.

According to a Monday statement, the London-based lender’s non-binding offer was accepted by Zodia Custody shareholders and noteholders. The deal would integrate Zodia’s custody platform with Standard Chartered’s own operations, helping the bank launch digital asset custody services in markets including the UK and Australia.

Zodia’s infrastructure unit will be separated into an independent SaaS company called Zodia Solutions. The business will remain under CEO Julian Sawyer and will be majority-owned by Standard Chartered’s venture capital arm.

Existing Zodia Custody investors, including Northern Trust, Emirates NBD Bank PJSC, National Australia Bank and SBI Holdings, are still in discussions regarding future ownership stakes in Zodia Solutions.

Market implications for institutional crypto custody

The transaction would make Standard Chartered one of the most prominent traditional banks with a fully integrated crypto custody offering. Institutional custody has become a key part of the digital asset ecosystem as regulated financial entities seek compliant ways to hold Bitcoin, Ethereum, and other crypto assets on behalf of their clients.

By 2025, the global market for digital-asset custody had grown substantially, driven by the approval of spot Bitcoin exchange-traded funds in the US and rising allocations from pension funds, sovereign wealth vehicles, and asset managers. Banks that moved early to build or acquire custody infrastructure were well positioned to capture mandates from institutional allocators who required the credit quality and regulatory standing of established financial institutions.

Standard Chartered’s move also carries a competitive weight. BNY Mellon and State Street have invested in digital asset servicing capabilities, while Coinbase Custody, BitGo, and Fireblocks have built strong market share among crypto-native institutions.

Standard Chartered has been building its digital asset capabilities for several years. The bank was an early backer of Zodia Custody when the venture launched in 2021 alongside Northern Trust. It also has exposure to the sector through its venture capital investments and its involvement in blockchain-based trade finance initiatives.