Back to the list

Standard Chartered's Crypto-Arm Zodia Custody To Offer Staking Service - TheNewsCrypto

source-logo  thenewscrypto.com 20 September 2023 17:40, UTC
  • The service was developed in response to the growing interest among financial institutions.
  • The cryptocurrency custodian has collaborated with OpenEden.

Standard Chartered’s crypto-arm, Zodia Custody, intends to provide payouts on cryptocurrency assets for its customers. In order to provide investors with the opportunity to earn yield while taking use of the advantages of blockchain technology. The cryptocurrency custodian has collaborated with OpenEden to provide the “Zodia Custody Yield” service.

According to Zodia Custody, their yield offering gives institutional investors access to off-chain income potential for their on-chain assets without jeopardizing the platform’s bank-grade security. This includes the process of staking, in which cryptocurrency owners keep their digital assets locked up to safeguard the blockchain in exchange for periodic crypto incentives.

Targeting Institutional Investors

As an attractive revenue stream, staking presents a regulatory pitfall for the U.S.-based crypto enterprises. The SEC has previously filed lawsuits against companies for failing to inform retail users of the risks associated with using their products.

However, European businesses are starting to participate. Earlier this month, the Boerse Stuttgart Group, introduced a comparable staking service for institutional customers. It cited rising demand from institutional investors.

Similarly, Zodia said that their service was developed in response to the growing interest among financial institutions in stablecoins and other low-risk, liquid, and transparent digital asset offerings.

In addition, according to Julian Sawyer, CEO of Zodia Custody, many aspects of conventional finance are amenable to being moved to digital assets. Only recently did Zodia reveal that it will also be offering its cryptocurrency custody services in Singapore.

Highlighted Crypto News Today:

Stanford University to Return $5.5M Donations Made by FTX