Zodia Custody, a London-based digital asset storage provider, has raised $36 million in a funding round led by SBI Holdings, one of Japan’s largest financial conglomerates, and Standard Chartered, a leading international banking group.
Zodia Custody provides a secure and institutional-grade custody solution for digital assets, including cryptocurrencies and tokenized securities. With clients ranging from crypto exchanges and trading firms to institutional investors, the company offers a range of services, such as cold storage, multi-signature wallets, and smart contract support.
The funding round was oversubscribed, according to Zodia Custody, with participation from other investors including Nomura Research Institute and Mitsubishi UFJ Financial Group. The funds will be used to finance the company’s growth and expansion plans, including the development of new products and services, as well as hiring new talent.
“We are delighted to have the support of such prestigious investors as SBI Holdings and Standard Chartered, which reflects the growing demand for institutional-quality custodial services for digital assets,” said Max Rabinovich, CEO of Zodia Custody. “This funding will enable us to accelerate our growth plans and fulfill our mission of bridging the gap between traditional finance and the digital asset economy.”
The investment by SBI Holdings is part of a wider strategy by the company to expand its presence in the crypto industry. SBI Holdings is heavily involved in the development of blockchain technology and has made several investments in crypto-related startups and projects. The company is also planning to launch its own digital asset trading platform.
“We see great potential in the digital asset market, which is growing rapidly and has huge potential to transform traditional finance,” said Yoshitaka Kitao, CEO of SBI Holdings. “Zodia Custody has an outstanding team and technology platform that is well-positioned to serve this market, and we are pleased to support their growth and development.”
Standard Chartered’s investment in Zodia Custody is part of the bank’s broader digital asset strategy, which includes exploring the use of blockchain technology and digital currencies. The bank has also made investments in other digital asset startups, such as Metaco and Paxos.
“Our investment in Zodia Custody reflects our belief in the potential of digital assets to transform the financial industry, and our commitment to providing innovative solutions to our clients,” said Alex Manson, Head of Ventures at Standard Chartered. “Zodia Custody has built a best-in-class custody solution that is critical to the mainstream adoption of digital assets, and we are excited to be part of their journey.”
The funding round comes at a time of increasing interest and investment in the crypto space, as more traditional financial institutions and investors look to add digital assets to their portfolios. The rise of decentralized finance (DeFi) applications and non-fungible tokens (NFTs) has also fueled demand for secure and reliable custody solutions.
Zodia Custody is well-positioned to capitalize on this growing demand, with its institutional-grade technology platform and experienced team. The company’s focus on security and compliance, as well as its ability to support a wide range of digital assets, sets it apart in a crowded market.
Overall, the funding round is a testament to the growing institutionalization of the crypto industry and the increasing importance of secure and reliable custody solutions. As more traditional financial institutions and investors enter the crypto space, demand for institutional-quality custody services is likely to continue to grow. Zodia Custody’s successful fundraising round puts it in a strong position to capture this market opportunity and drive further growth in the digital asset ecosystem.
Zodia Custody, a cryptocurrency storage provider, has raised $36 million in funding from SBI Holdings and SC Ventures. The London-based firm, which provides digital asset custody services to institutional clients, plans to use the funding to expand its token coverage and enhance its settlement product, Interchange.
The funding comes as the demand for cryptocurrency custody services continues to grow among institutional investors, who are seeking greater assurance and compliance in the digital asset ecosystem. Zodia Custody, with its strong financial backing from Standard Chartered and Northern Trust, aims to meet this demand by ensuring the safe storage and protection of clients’ assets.
According to a Zodia Custody spokesperson, the company’s settlement product, Interchange, is crucial to protecting clients’ assets when they are traded on exchanges. The product is designed to provide an extra layer of security by facilitating the settlement of digital assets in a controlled environment, reducing the risk of theft or loss.
Zodia Custody’s CEO, Julian Sawyer, believes that compliance is essential for the future evolution of the cryptocurrency sector. As investors demand greater assurance and rigor, it is increasingly important for companies to be transparent about their practices and security measures, to build trust and credibility in the market.
The funding from SBI Holdings and SC Ventures is a significant milestone for Zodia Custody, as it seeks to establish itself as a key player in the cryptocurrency custody market. The support of these two major financial services firms will enable the company to expand its services and reach a wider client base, as more institutional investors seek to enter the cryptocurrency market.
Zodia Custody’s partnership with Standard Chartered and Northern Trust is also a clear indication of the growing interest among traditional financial institutions in the cryptocurrency sector. As the value of digital assets continues to rise, and as more businesses and consumers adopt cryptocurrencies for payments and transactions, financial services firms are increasingly seeking to capitalize on this trend.
Overall, the funding from SBI Holdings and SC Ventures is a positive development for Zodia Custody, as it seeks to expand its services and build greater trust and confidence in the cryptocurrency sector. With the support of major financial services firms, the company is well-positioned to meet the growing demand for digital asset custody services and to establish itself as a leader in this emerging market.