Zodia Custody Launches in Singapore to Tap into Growing Digital Asset Market
Zodia Custody, a company that helps large institutions store their crypto, launched in Singapore on Tuesday in a bid to tap into the country’s rapidly growing digital asset market. This article discusses the launch and the significance of Zodia’s entry into Singapore.
First Bank-Owned Entity for Digital Asset Custody Services
Zodia is the first entity owned by and partnered with banks to provide digital asset custody services for financial institutions in Singapore. This development marks a significant milestone in the country’s crypto landscape.
Background of Zodia
Zodia is a subsidiary of Standard Chartered, a British bank with a strong presence in emerging markets. It was launched in 2021 alongside Northern Trust and is also part-owned by SBI Digital Asset Holdings, the crypto division of Japanese bank SBI. Zodia aims to expand across Asia-Pacific to meet the growing demand for bank-grade custody of digital assets.
Singapore’s Growing Crypto Market
Singapore is experiencing rapid growth in terms of digital asset adoption. The city-state has a crypto ownership rate of 19%, higher than the global average of 15%. The market is maturing, with efforts to establish rules for cryptoassets and develop central bank digital currencies.
Zodia’s Services and Clients
Zodia works with a wide range of clients, including hedge funds, high-frequency traders, prime brokers, exchanges, and asset managers. Its services cater to the needs of institutional investors in the digital asset space.
Standard Chartered’s Support
Zodia benefits from being backed by Standard Chartered, a well-established and respected bank in Singapore. The support of such a large institution enhances Zodia’s credibility and facilitates conversations with major financial firms.
Growth of Crypto Companies in Singapore
Despite a bear market in the industry, funding for crypto companies in Singapore has remained strong. In 2022, crypto-related funding reached $1.2 billion, making it the top area of fintech investment in the country. However, there was a 21% decrease in funding compared to the previous year.
Zodia’s Expansion into Abu Dhabi
Zodia recently expanded into Abu Dhabi, taking advantage of the city’s crypto-friendly regulatory environment and its status as a financial center. This move demonstrates Zodia’s commitment to expanding its presence in key markets.
Zodia Custody’s launch in Singapore signifies the growing interest and demand for digital asset custody services in the country. With the support of Standard Chartered and its strategic partnerships, Zodia is well-positioned to capitalize on the opportunities in the rapidly evolving crypto landscape.