Zodia Custody, a digital asset custodian, has secured £29 million in Series A investment.
The London company, a subsidiary of Standard Chartered bank already backed by Northern Trust, will use the fresh investment for geographic expansion, to increase its coin and token coverage, and enhance Interchange, its off-exchange settlement product that protects client assets that are traded on exchanges.
The Series A round comes from SBI Holdings, a Japanese financial conglomerate, SC Ventures, the fintech, investment and ventures arm of Standard Chartered, and other investors.
Interchange safeguards digital assets and reduces counterparty risk exposure, especially for cases of high-volume trading. The product claims to help institutions to connect to multiple trading platforms and trade without leaving funds on exchanges.
It also offers institutions greater flexibility to capitalise on market opportunities without compromising on speed. With Interchange, clients retain full control of their assets and all parties are protected through settlement obligations.
“As a business with a significant and vested interest in the digital asset space, we know all too well the need to evolve the ecosystem as a whole,” said Yoshitaka Kitao, SBI Holdings’ representative director, chairman, president and CEO.
“This further investment into Zodia Custody, alongside our previously announced plans to set up a joint venture, builds on our work to bring Zodia Custody’s services to the Japanese market. It reinforces our belief in the future of the ecosystem, alongside both the Zodia Custody product and the team powering it.”
Zodia Custody has championed compliance for all players across the digital asset ecosystem. The custodian is registered in the jurisdictions where it operates — including in the UK, Ireland and, most recently, in Luxembourg.
“The future direction of the digital asset ecosystem is clear. As investors demand greater assurance and rigour – compliance is crucial to the future evolution of our sector,” said Julian Sawyer, CEO of Zodia Custody.
“We are grateful to SBI Group, Standard Chartered, SC Ventures and Northern Trust for their support in our vision to build a better infrastructure across the digital asset ecosystem. With three global banks now backing us, this investment is a vote of confidence in our goal, allowing us to continue responding to the unprecedented demand of investors through further innovation.”