Standard Chartered Moves to Absorb Zodia Custody in Digital Asset Push

Bank looks to integrate crypto custody capabilities into core banking infrastructure as institutional demand surges.

Apr. 8, 2026 at 11:36am

Got story updates? Submit your updates here. ›

Standard Chartered is negotiating a partial takeover of Zodia Custody, a digital asset safekeeping startup it majority-owns, signaling that major banks are moving from experimenting with crypto infrastructure to embedding it directly into their operations. The bank is exploring a merger that would bring Zodia's capabilities closer to its core financial infrastructure rather than operating them as a standalone venture.

Why it matters

This move reflects a broader shift in the banking industry, as institutions recognize that offering crypto custody services is becoming a fundamental part of their future offerings. As institutional demand for holding Bitcoin, Ethereum, and other digital assets has surged, banks are deciding that crypto custody is a service they need to provide directly, rather than through a separate entity they can easily distance themselves from.

The details

Zodia Custody was established in 2020 through a joint venture between Standard Chartered and Northern Trust, with the bank holding a majority stake. The startup provides custody services for Bitcoin, Ethereum, and other digital assets, targeting institutional clients. Northern Trust exited its stake in 2023, leaving Standard Chartered with full ownership and a strategic decision to make about how deeply to integrate the business.

  • Zodia Custody was established in 2020 through a joint venture between Standard Chartered and Northern Trust.
  • Northern Trust exited its stake in Zodia Custody in 2023, leaving Standard Chartered with full ownership.
  • The SEC approved spot Bitcoin ETFs in January 2024, and the subsequent approval of spot Ethereum ETFs reinforced the surging institutional demand for holding cryptocurrencies.

The players

Standard Chartered

A major global bank that is negotiating a partial takeover of Zodia Custody to integrate crypto custody into its core banking infrastructure.

Zodia Custody

A digital asset safekeeping startup that was established in 2020 through a joint venture between Standard Chartered and Northern Trust, with Standard Chartered holding a majority stake.

Northern Trust

A financial services company that exited its stake in Zodia Custody in 2023, leaving Standard Chartered with full ownership.

BlackRock's iShares Bitcoin Trust

A spot Bitcoin ETF that attracted over $15 billion in net inflows within its first several months, creating enormous demand for qualified crypto custodians.

Got photos? Submit your photos here. ›

What’s next

The specific structure of the partial takeover that Standard Chartered is considering remains to be finalized. The bank may want to integrate certain custody functions while leaving other parts of Zodia's business to operate independently, perhaps to maintain the startup's agility or to isolate regulatory risk.

The takeaway

This move by Standard Chartered signals a broader shift in the banking industry, as institutions recognize that offering crypto custody services is becoming a fundamental part of their future offerings. As institutional demand for holding digital assets continues to surge, banks are deciding that crypto custody is a service they need to provide directly, rather than through a separate entity they can easily distance themselves from.