Standard Chartered Eyes Integration of Zodia Custody Operations Into Core Banking: Report
The UK-based banking giant is weighing options to integrate portions of its crypto custody subsidiary Zodia into its corporate and investment banking division, according to reports.
According to reports, Standard Chartered is considering a significant reorganization of Zodia Custody, its majority-held digital asset custodian, reflecting a broader trend among major financial institutions to consolidate cryptocurrency infrastructure within their traditional banking operations.
The financial institution headquartered in the United Kingdom intends to integrate Zodia's cryptocurrency custody operations into an existing unit within its corporate and investment banking arm that currently provides comparable services, according to Bloomberg's Wednesday report, which cited sources with knowledge of the situation. Meanwhile, Zodia would continue functioning as an independent Software-as-a-Service (SaaS) platform dedicated to digital asset custody. Sources suggest the restructuring announcement may be released within the current month.
Whether Standard Chartered has initiated discussions with Zodia's minority stakeholders remains uncertain at this time. These minority investors comprise Northern Trust, Emirates NBD, National Australia Bank and SBI Holdings.
The banking institution has aggressively expanded its presence in the digital asset sector, with reports indicating exploration of launching a cryptocurrency prime brokerage platform via its innovation division, SC Ventures, while also implementing institutional-grade crypto trading capabilities during the summer months of 2025.
The financial institution demonstrated early adoption in the digital asset space by establishing Zodia in 2020 alongside Northern Trust, and the custody service provider has subsequently secured external funding while expanding its operations to seven office locations spanning Europe, Asia and the Middle East.
Cointelegraph contacted both Standard Chartered and Zodia seeking comment, but neither organization had provided a response at the time of publication.
How other big banks are internalizing crypto custody
The reported strategic reconsideration by Standard Chartered coincides with a broader movement among international banking institutions to incorporate digital asset custody services directly within their regulated banking structures. Morgan Stanley submitted an application in February for a US de novo national trust bank charter, a regulatory framework that would enable the institution to provide custody for specific digital assets and facilitate purchase, sale, swap, transfer and staking operations for institutional clients under bank regulatory supervision.
BNY Mellon introduced its Digital Asset Custody platform in the US market in October 2022, enabling approved institutional clients to store and move Bitcoin (BTC) and Ether (ETH) in conjunction with traditional financial assets through a unified platform interface, establishing the bank as a central service provider for both traditional and tokenized asset management solutions.