Northern Trust and SC Ventures Form Zodia as a Custody Solution for Cryptocurrencies
Posted on 12/09/2020
SC Ventures is the innovation and ventures unit of Standard Chartered plc. SC Ventures and Northern Trust signed an agreement to form Zodia Custody, an institutional-grade custody solution for cryptocurrencies. Northern Trust and SC Ventures see that cryptocurrencies already represent 0.3% of the world’s currency and bank deposits. Zodia is designed to enable institutions to invest in the emerging cryptocurrency assets. Zodia is expected to begin operations in London in 2021. At launch, pending regulatory approval, Zodia will provide custody services for the most-traded cryptocurrency assets – Bitcoin, Ethereum, followed by XRP, Litecoin, and Bitcoin Cash – which represent the majority of client demand and activity, accounting for approximately 80% of the total assets traded on the top cryptocurrency exchanges.
In 2020, Northern Trust and BondEvalue partnered to complete the first trade of a fractionalized blockchain-based bond, working in cooperation with the Monetary Authority of Singapore.
Zodia Custody is in the process of registering with the FCA under UK Money Laundering Regulations and will apply standards that are equivalent to the custody of traditional securities.