TL:DR Breakdown:
- Standard Chartered said its crypto custody business with the Northern Trust would launch next year.
- The custody platform will debut in London, targeting institutional investors with popularly-traded cryptos.
The multinational British financial services company, Standard Chartered has officially made it known that it was developing a custody service for digital currencies via its ventures and innovation subsidiary, SC Ventures. There was an unconfirmed report in July that the bank was planning a custody service.
Today, the company informed that the crypto custody business dubbed “Zodia Custody” will become available by next year, starting with institutional digital currency investors in London.
SC crypto custody for institutions
The crypto custody service will be launched in partnership with Northern Trust, according to the report. Zodia will specifically focus on serving institutional investors in the country, allowing them to invest in popular digital currencies. For a start, the custody platform will support the five most-traded cryptocurrencies, which include Bitcoin (BTC), Ether (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH). These cryptos contribute a significant valuation to the digital currency market.
The companies noted in the announcement that the crypto custody service is pending a regulatory green light from the United Kingdom’s Financial Conduct Authority (FCA). All the standards applicable to traditional securities custody will be retained in Zodia custody for digital currencies.
Banks are going for digital asset custody business
Ultimately, the development today will help drive up more institutional adoption of cryptocurrencies in the UK, as Northern Trust’s Pete Cherecwich, said the platform would enable institutional assets holders, asset managers, including family offices to invest in emerging cryptocurrencies.
Cryptopolitan reported on Tuesday that another financial services company in Spain, BBVA, is planning to launch crypto custody and trading service for residents in Switzerland.
