Standard Chartered said Wednesday it has signed definitive agreements to acquire Zodia Custody, the digital asset custodian backed by its own venture arm. That turns a non-binding offer into a binding deal.

Under the agreements, Standard Chartered I H Limited will buy 100% of Zodia Custody Limited. Zodia Custody Limited is the parent of Zodia's regulated custody entities in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg. The deal still needs regulatory approvals and has to meet customary closing conditions.

Where the pieces go

  • Custody moves inside the bank. After completion, Zodia's regulated custody business will be integrated into Standard Chartered's existing digital asset custody activities within Securities Services.
  • Software spins out. Zodia's software and professional-services business moves to Zodia Solutions, a new company under SC Ventures. Its named backers include NAB Ventures, Northern Trust, SBI Ventures Asset, Emirates NBD and Investcorp's Zodia Investments.
  • Clients: the bank says it expects no disruption and that existing Zodia Custody clients "continue to be serviced as usual."

Ying Ying Tan, Standard Chartered's global head of securities services and digital assets, said the purchase "further deepens our digital asset custody portfolio." Zodia Custody CEO Richard Clark said "custody is increasingly becoming part of the global banking landscape."

Unchained, via Yahoo Finance, notes that the release gave no purchase price and no expected closing date, and did not name the regulators involved. The bank first said on May 18 that Zodia's shareholders and noteholders had accepted its offer.

A busy month for the bank's crypto desk

On Oct. 12, Standard Chartered said it now offers institutional custody of Ripple's RLUSD stablecoin on the XRP Ledger through its DIFC branch. Two days later it launched bitcoin and ether trading for affluent clients in the UAE:

Custody is also on Ripple's mind. It promoted a BCG report on institutional custody the same day: