Standard Chartered-backed Zodia Custody wins Luxembourg approval to expand stablecoin custody offering

Standard Chartered-backed Zodia Custody has secured a Payment Institution license from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) to expand its regulated services to include the custody and transfer of Electronic Money Tokens (EMTs), or stablecoins, according to a Tuesday statement.

The approval complements the company’s existing MiCA Crypto-Asset Service Provider (CASP) license and enhances its ability to serve institutional clients across the European Union.

With both licenses in place, Zodia Custody can provide integrated custody and transfer services for crypto assets and stablecoins within a single regulated framework. The move is designed to simplify operations for institutions while reducing the risks associated with fragmented service providers.

According to Ami Nagata, Managing Director for Luxembourg at Zodia Custody Europe, the new authorization strengthens the firm’s bank-grade infrastructure and provides clients with greater certainty when managing digital asset and stablecoin strategies in Europe.

“Institutional adoption of crypto assets demands infrastructure that meets the highest standards of regulatory adherence and operational efficiency,” Nagata stated. “With both licenses in place, our clients have the certainty they need to manage their EMT and crypto asset strategies across Europe, with full confidence that their assets are safeguarded within a bank-grade environment.”

The combined regulatory approvals position Zodia Custody to support growing institutional demand for stablecoins, which are increasingly being used for settlement, liquidity and treasury functions. The company believes EMT custody and transfer capabilities will become a standard requirement for digital asset infrastructure providers.

The CSSF license joins a range of regulatory authorisations held by Zodia Custody across major global markets, including the UK, UAE, Hong Kong, Singapore and Australia.

Standard Chartered has agreed to acquire Zodia Custody’s crypto custody business, integrating the platform into its operations while spinning off the infrastructure unit as a separate SaaS company called Zodia Solutions.

The proposed acquisition would position Standard Chartered among the leading traditional banks offering integrated crypto custody services for institutional investors.