UK-based banking group Standard Chartered, through its innovation unit SC Ventures, has collaborated with American asset manager Northern Trust to launch a cryptocurrency custodian for institutional investors.
Dubbed Zodia Custody, the new offering will enable institutions to invest in emerging cryptocurrency assets, including transaction and settlement activities.
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It will initially support digital assets Bitcoin and Ethereal and then XRP, Litecoin and Bitcoin Cash, which collectively constitute nearly 80% of the total assets traded across top crypto exchanges.
Northern Trust president of Corporate & Institutional Services Pete Cherecwich said: “Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments.”
The platform is scheduled to launch in London next year, subject to registration with the U.K. Financial Conduct Authority and other customary conditions.
With the move, the two companies looks to cash in on the growing interest for digital assets.
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By GlobalDataThe British lender has previously backed core technology provider Metaco. At the same time, it teamed up with the Bank of Thailand and the Hong Kong Monetary Authority to explore distributed ledger interoperability for cross-border money transfers.
Meanwhile, in 2017, Northern Trust partnered with IBM for the commercial deployment of blockchain technology for the private equity sector.
The two companies developed a blockchain solution based on the open source Linux Foundation Hyperledger Fabric.
Last year, Broadridge Financial Solutions took over the rights of the blockchain-based private equity asset servicing platform of Northern Trust.
Using Northern Trust’s blockchain technology, Broadridge will continue to develop the platform and make it available for all market participants in the private equity space.
Zodia CEO Maxime De Guillebon said: “We combine the risk management, compliance, governance and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies.
“By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability.”
Crypto moves by other banks
Several firms have entered the crypto space in recent times.
This January, Swiss private banking group Julius Baer, in association with crypto-bank SEBA, launched its digital assets service.
Last year, Swiss asset manager Vontobel launched a service called Digital Asset Vault.
Fund services provider Zedra also forayed into the digital assets markets in partnership with digital custodian Vo1t.
