Standard Chartered Set to Absorb Zodia Custody in Major Crypto Reshuffle

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Crypto Custody Consolidation: Standard Chartered Is Quietly Planning to Absorb Zodia Custody Into Its Investment Bank

Standard Chartered is reportedly moving its crypto custody business, Zodia Custody, into its main banking operations as soon as this month. This move, reported by Bloomberg, will combine Zodia’s services with existing offerings within the bank’s corporate and investment banking division, streamlining its digital asset custody solutions.

Summary

  • The restructuring plan would merge overlapping custody functions that currently run in parallel between Standard Chartered’s internal CIB digital asset unit and the bank-backed Zodia Custody subsidiary it co-founded in 2020 with Northern Trust; an announcement could come as early as April 2026
  • Zodia Custody would not disappear: the plan preserves Zodia as a standalone software-as-a-service platform offering crypto custody white-label services to third-party banks and fintechs across its seven offices in London, Dublin, Luxembourg, Singapore, the UAE, Sydney, and Hong Kong
  • Standard Chartered declined to comment on the reported plans; minority shareholders including Northern Trust, Emirates NBD, SBI Holdings, and National Australia Bank did not immediately respond to or confirm whether they have been approached about the restructuring

As someone invested in crypto, I’m watching the custody space closely, and the news about Standard Chartered potentially acquiring Zodia Custody is a big deal. It seems like they’re not content just offering crypto services *through* a separate company anymore. They want to directly *own* the infrastructure that institutions – their clients, basically – will use to hold digital assets. Bloomberg reported they’re planning to integrate Zodia’s operations right into their main banking division, which has been building out these digital asset services for a while now, since at least 2024. This suggests they’re serious about becoming a major player in how institutions handle crypto.

Zodia Custody and Standard Chartered have both been independently managing digital asset custody systems, which provided a backup in case of issues. Now, they’re combining these systems into one, regulated operation. This will lower costs and make things easier for clients.

What the Restructuring Would Actually Look Like

As I understand the plan, Zodia Custody, which currently handles digital assets for Standard Chartered’s institutional clients, will be integrated directly into the bank. However, Zodia won’t be shutting down. Instead, it will operate as a behind-the-scenes software platform, offering crypto custody services to other banks and fintech companies. These firms can then offer those services to their own clients, branded as their own. Currently, Zodia supports over 75 different digital assets from our seven global offices, and we have a team of around 150 people. We’re also fully registered and regulated in the UK, Ireland, Luxembourg, and Hong Kong.

This setup – keeping some crypto services in-house while offering others externally – follows Standard Chartered’s overall approach to digital assets. In early 2025, the bank began offering its own crypto custody services in Luxembourg and, later that year, launched crypto trading for institutional investors through its CIB division. These internal services were essentially competing with Zodia, the bank’s external platform, for the same customers.

Standard Chartered’s Broader Crypto Stack

Standard Chartered has been steadily building its capabilities in digital assets for several years, expanding into areas like secure storage, trading, stablecoins, and prime brokerage services. This work includes the launch of a crypto prime brokerage through its SC Ventures division in January 2026, and a partnership with DCS Card Centre in November 2025 to offer stablecoin-linked credit cards in Singapore. Recently, Zodia Markets, the bank’s crypto trading arm, saw a change in leadership – Usman Ahmad left in March 2026 and was replaced temporarily by Nick Philpott. This leadership shift happened just before news of a restructuring within their custody services was announced.

According to crypto.news, Zodia was actively raising funds and growing internationally until late 2024, aiming to expand into new areas and attract investors interested in tokenization and payments. Meanwhile, Standard Chartered obtained a crypto custody license in Luxembourg in January 2025, which now appears to have been a step towards integrating Zodia’s operations within the bank’s regulatory framework, as crypto.news highlighted.

Competition among companies offering to securely hold digital assets is heating up. Major players like BNY Mellon, State Street, and Morgan Stanley—who chose BNY Mellon to safeguard their Bitcoin ETF—have all been growing their crypto custody services this year. Standard Chartered’s recent actions suggest a trend of larger, established banks directly challenging specialized crypto custody firms.

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2026-04-08 23:48