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Crypto custodian, Zodia Custody, aims to raise $50 million from investors to fuel its plans to branch out into new regions and expand its product range.
According to a Bloomberg report on Nov. 4, Standard Chartered’s crypto custodian subsidiary Zodia Custody is looking to raise $50 million in a round of funding, said Zodia Custody Chief Executive Officer, Julian Sawyer.
Sawyer stated the crypto custodian wants to use those funds to expand its operations to include previously untapped regions and add to its growing list of products.
Moreover, he explained that even though Zodia Custody is backed by a number of major financial firms, it hopes to partner up with a more diverse pool of investors, specifically firms that work in the payment and tokenization sectors.
Sawyer claims that Architect Partners, an advisory firm focused on crypto, will be lending Zodia Custody a hand in their efforts to raise more funding, an initiative that began some time last month. Though, the Bloomberg report noted that Architect Partners did not respond to a request for comment.
Recently, another bank-backed crypto custodian, Komainu Holdings, a crypto custody firm subsidiary of Japanese bank Nomura indicated that it expects to close a round of funding in the following weeks.
On Oct. 22, Komainu merged with Singapore-licensed rival named Propine Holdings in order to expand their operations in Singapore and other parts of Asia.
Aside from Standard Chartered, other major banking institutions have dipped their toes into crypto by creating crypto custodian subsidiaries or expressed interest in doing so. These players include some of the largest custodial banks in the world such as Bank of New York Mellon, State Street and Citigroup.
Formed in 2021, Zodia Custody is described as Standard Chartered and Northern Trust’s crypto custodian startup. In April 2023, Zodia managed to raise $36 million in a round of funding led by SBI Holdings followed by National Australia Bank and other firms.
Though Zodia Custody is not the first Standard Chartered crypto-endeavor as the bank was also the first bank to join the GDF Patron Board, an alliance of entities working together to strengthen standards for custody, settlement finality, and brokerage across the crypto and digital asset sphere.