Standard Chartered announced today that it has collaborated with Chicago-based financial services company, Northern Trust to launch a custody service for institutional cryptocurrency investors.
Dubbed ‘Zodia custody’, the planned custody service will get operational by next year in London. The bank aims to combine traditional cryptocurrency services with banking expertise to facilitate institutional investors.
According to the official press release, Zodia will provide custody service of Bitcoin, Ethereum, XRP, Litecoin and Bitcoin Cash at the start. The bank plans to add more cryptocurrencies in the future.
Standard Chartered outlined the growing interest in cryptocurrencies worldwide. The bank mentioned that crypto-assets now represent 0.3% of the world’s currency and bank deposits with an expected annual growth rate of 32%. Despite the growing popularity, institutional investors only account for 9% of the total investment in cryptocurrencies.
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Commenting on the announcement, Maxime De Guillebon, Chief Executive Officer of Zodia, said: “Zodia was established to address the need for a cryptocurrency custodian that truly understands custody. We combine the risk management, compliance, governance, and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies. By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability.”
Standard Chartered partnered with financial services provider, Northern Trust to develop a product with a focus on growing institutional interest in cryptocurrencies. Northern Trust currently has more than $1 trillion in assets under management. The company launched the industry’s first deployment of blockchain technology for the private equity market in 2017.
“The introduction of digital custody backed by the know-how and experience of global banks is a breakthrough in the evolution and support of institutional cryptocurrency markets. Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments,” Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust, said in a statement.