cryptopotato.com
Crypto custody solution Zodia Custody, partly owned by the UK multinational banking institution Standard Chartered, is expanding its services to Hong Hong Kong as part of its latest push into the Asian market.
Meanwhile, Hong Kong continues to serve as a major attraction for crypto companies looking to set up businesses in a cryptocurrency-friendly environment.
Zodia Custody Taps Into Hong Kong Market Amid Institutional Demand
According to CNBC, Zodia Custody’s entry into Hong Kong is the platform’s latest expansion effort following previous forays into other Asia-Pacific (APAC) regions such as Japan and Singapore. The London-based company also offers its services to clients in Australia.
As stated by Zodia Custody CEO Julian Sawyer, the institutional demand for crypto in Hong Kong makes the city-state an ideal market for the company. Meanwhile, the company’s expansion into Hong Kong will come in phases, with the crypto custodian initially offering a limited set of crypto assets to clients.
Also, the report stated that Zodia Custody is in talks with Hong Kong regulators — the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) — to offer regulated services in the region. According to Sawyer,
“The Hong Kong government and the regulators see digital assets as the future and also want Hong Kong to be a hub.”
Apart from Zodia Custody’s operational regions, the CEO said that there are clients in other jurisdictions who want to get involved in crypto.
“What we’re seeing is there are absolutely clients in all of those four markets who want to do things. We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side.”
Zodia Custody was launched in 2021 through a joint venture by Standard Chartered’s innovation unit SC Ventures, and US-based financial services company Northern Trust, to offer a cryptocurrency custody solution for institutional clients.
In April 2023, Zodia Custody raised $36 million in a Series A fund round led by Japanese financial services firm Holdings.
Hong Kong’s Continued Push as Major Crypto Hub
More crypto-based companies continue to set up shop in Hong Kong due to the city-state’s favorable stance concerning the industry. The special administrative region of China is working towards positioning itself as a major cryptocurrency hub, despite China’s anti-crypto attitude.
As previously reported by CryptoPotato, Hong Kong introduced a new rule that allowed virtual asset providers (VASPs) to offer services to retail traders provided the businesses apply for and are granted a license.
HashKey Exchange and OSL Digital Securities received their licenses from Hong Kong’s SFC, enabling both firms to serve retail investors.