Zodia Custody, the cryptographic security enterprise owned by the British financial giant, Standard Chartered, is expanding its operations into the vibrant landscape of Hong Kong.
This move into the Asia-Pacific region marks Zodia Custody’s most recent expansion. It comes on the heels of their announcement to establish a presence in Singapore just last month.
Established in the year 2020, Zodia Custody specializes in providing robust solutions for safeguarding digital assets. Their focus is on financial entities, ensuring the impregnable fortification of their digital holdings.
In Hong Kong, the demand for cryptocurrency services is primarily driven by institutional entities. This was affirmed by Julian Sawyer, the CEO of Zodia. He highlights the forward-thinking attitude of Hong Kong concerning digital assets.
Additionally, both the Hong Kong government and its regulatory authorities perceive digital assets as the way forward. They ardently desire to position Hong Kong as a thriving epicenter within this burgeoning industry.
Standard Chartered and Zodia’s Asia-Pacific Crypto Expansion
The expansion of Zodia into the Hong Kong market is an integral part of a comprehensive strategy. This strategy is aimed at establishing a robust foothold across the Asia-Pacific realm.
Moreover, Over the past few months, the enterprise has extended its services to Japan, Singapore, and Australia. This expansion has cemented its position as a substantial contender in the domain of institutional cryptocurrency custody.
It’s important to note that Zodia Custody is not solely the brainchild of Standard Chartered; it shares ownership with prestigious institutions like Northern Trust and Japan’s SBI Holdings.
Hong Kong is the final stop on Zodia’s Asia-Pacific journey, where the company endeavors to cater to the requirements of clients hailing from all four markets.
Julian Sawyer has affirmed the rising interest from clients within and outside these regions who are eager to partake in the institutional aspect of cryptocurrency.
Hong Kong’s dedication to embracing crypto assets is particularly significant, especially in the shadow of China’s stringent anti-cryptocurrency policies, which included the prohibition of bitcoin trading and mining in 2021.
Zodia Expands into Hong Kong as SFC Advances Digital Asset Regulations
The Hong Kong Securities and Futures Commission (SFC) has proactively introduced a regulatory framework for digital assets earlier this year.
This framework allows companies to seek registration and provide their cryptocurrency services in a regulated manner. However, at present, only two enterprises, OSL Digital and Hash Blockchain, have been granted licenses by the SFC.
Zodia’s penetration into the Hong Kong market will occur in stages. Initially, they will provide services for Hong Kong clients, encompassing a select array of digital assets.
The enterprise is currently in talks with both the SFC and the Hong Kong Monetary Authority. They aim to explore the feasibility of obtaining regulatory approval within the financial district.