Standard Chartered is bringing Zodia Custody’s regulated crypto business under its own roof, the bank confirmed Monday. At the same time, it’s spinning out Zodia Solutions as a separate entity. The moves signal a growing conviction among big banks that owning core digital asset custody directly — rather than outsourcing to a subsidiary — is the way forward.
The deal in plain terms
Zodia Custody, a London-based crypto custodian backed by Standard Chartered and Northern Trust, will see its regulated operations folded into the parent bank. The spin-out of Zodia Solutions creates a standalone firm focused on technology and infrastructure. The bank didn’t disclose financial terms or a timeline for closing the transactions.
Why now
Big banks have been edging deeper into crypto custody this year. By absorbing Zodia Custody’s regulated business, Standard Chartered gains direct control over client asset safekeeping — a shift from the earlier model where the bank held a minority stake. The spin-out lets Zodia Solutions sell its tech stack to other institutions without the regulatory overhead of a custodian.
For institutional clients who already use Zodia Custody, the transition should be seamless: the same regulated entity continues under Standard Chartered’s license. The separate Zodia Solutions, meanwhile, can pursue partnerships with banks and fintechs that want custody tech but don’t want to build it from scratch.
What’s next
The deals are subject to regulatory approvals. Standard Chartered has said it expects to complete the restructuring by the end of the third quarter. Until then, Zodia Custody continues operating as before. The unanswered question: whether other banks with custody joint ventures — think BNY Mellon or State Street — will follow Standard Chartered’s lead and pull their offerings in-house.
