Zodia, the institutional cryptocurrency custody platform jointly owned by financial giants Standard Chartered, SBI Holdings of Japan, and Northern Trust, is set to extend its services to the bustling financial hub of Hong Kong.
This expansion, revealed by Zodia CEO Julian Sawyer, is in response to the burgeoning demand for cryptocurrencies among institutional investors in the region.
Sawyer emphasized that the surge in crypto interest in Hong Kong primarily stems from institutional players rather than individual retail customers.
This aligns perfectly with Zodia’s core offering, which is tailored to cater to the needs of institutional clients.
He further highlighted that Hong Kong’s regulatory stance on cryptocurrencies is in harmony with Zodia’s ambitions.
The local government recognizes digital assets as the future and is actively positioning Hong Kong to become a pivotal hub in this rapidly evolving landscape.
Zodia’s entry into Hong Kong is part of its broader strategy to aggressively expand its footprint across Asia.
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In recent months, the platform has launched its services in Japan, Singapore, and Australia, tapping into the growing demand for secure cryptocurrency custody solutions.
The CEO stated, “What we’re seeing is there are absolutely clients in all of those four markets who want to do things,” indicating a robust appetite for crypto-related services in these regions.
Moreover, Zodia is also exploring opportunities beyond these jurisdictions, with interest coming from institutional clients and prospects worldwide.
The initial phase of Zodia’s expansion in Hong Kong will involve limited support for a select number of cryptocurrency assets.
Additionally, the platform is actively engaging with Hong Kong’s regulatory bodies, such as the Securities and Futures Commission and the Hong Kong Monetary Authority, to seek regulatory approval and ensure compliance within the financial district.
While Zodia has not responded to requests for comments at the time of writing, it’s worth noting that this development follows Standard Chartered’s original announcement in late 2020 to establish an institutional custodial platform for cryptocurrencies.
Launched in 2021, Zodia secured $36 million in a Series A funding round led by SBI Holdings in April 2023.
In conclusion, Zodia’s expansion into Hong Kong signifies its commitment to meeting the rising institutional demand for cryptocurrency services in Asia, reinforcing its position as a key player in the rapidly evolving digital asset custody space.
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