British multinational banking and financial services company Standard Chartered is reportedly stepping into the business of cryptocurrency custody as the firm’s innovation and ventures unit SC Ventures has formed a partnership agreement with the top asset servicing provider Northern Trust for rolling out an institutional-grade cryptocurrency custody solution for investors.
As reported by Business Wire on Tuesday, the new cryptocurrency custody business called Zodia Custody will target institutional investors and will offer them an effective digital asset custody solution. Reportedly, this cryptocurrency solution will be launched in London and is expected to start operations by the year 2021.
The agreement is still subjected to get registered with the United Kingdom’s financial regulatory body the Financial Conduct Authority (FCA). As soon as the registration with the UK’s FCA is completed, the project will begin its operations by the next year.
Initially, this new crypto custody project aims at providing custodial services for the most famous digital currencies including the world’s largest digital asset by market cap Bitcoin (BTC) and the second-ranked cryptocurrency Ethereum (ETH). However, Standard Chartered also plans to add custodial support for some other famous digital currencies as well in the future. These include XRP the native cryptocurrency of the blockchain payments firm Ripple, Litecoin (LTC), and Bitcoin Cash (BCH).
Executive’s Points of View Regarding this crypto custody solution
Senior executives shared their view on this cryptocurrency custody solution being introduced by Standard Chartered. The Head of SC Ventures said in a statement:
“The launch of Zodia demonstrates our commitment to rewiring the DNA in banking. Drawing on Standard Chartered’s heritage of providing custody services to institutional clients for 160 years, Zodia’s mission is to be a ‘force for good’ by lifting industry standards for digital assets in a sustainable, safe and responsible way.”
While on the other hand, the Chief Executive Officer (CEO) of Zodia Maxime De Guillebon said that the company felt the need for a digital asset custodian and that was the main intention behind developing Zodia to address this rising need.
The President of Corporate & Institutional Services at Northern Trust Pete Cherecwich also shared his view on this newly-proposed cryptocurrency custody solution and stated, “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.”