Standard Chartered finalizes binding agreement for Zodia Custody acquisition

Standard Chartered finalizes binding agreement for Zodia Custody acquisition

The bank has executed definitive agreements following shareholder approval of its initial May proposal, though completion awaits regulatory clearance.

Definitive agreements have been executed by Standard Chartered for the acquisition of Zodia Custody's regulated operating entities, with the deal remaining contingent upon obtaining regulatory approvals and satisfying closing conditions.

The execution of binding agreements moves forward a transaction that was first disclosed in May, at which time the bank's non-binding offer received acceptance from Zodia's shareholders.

Under the terms of the agreement, Standard Chartered will take 100% ownership of Zodia Custody UK Limited, which serves as the parent organization of Zodia's regulated operating entities across Singapore, Hong Kong, Australia, Luxembourg and the United Arab Emirates, according to the bank's Wednesday announcement.

The acquisition would see Zodia's crypto custody business become part of Standard Chartered's current Securities Services operations. Meanwhile, Zodia would transition its software and professional-services assets to Zodia Solutions, a standalone entity operating under SC Ventures, which will serve as a provider of digital asset infrastructure for financial institutions.

Reports emerged in April that the UK-based lender was contemplating incorporating Zodia's crypto custody business within its corporate and investment banking division.

The deal represents a component of the lender's wider push into crypto services. Standard Chartered introduced spot Bitcoin and Ether trading for institutional clients in the United Arab Emirates in September.