Capital markets News

StanChart’s Zodia Custody integrates with Metaco’s sub custody digital asset network

digital asset custody sub custody

Zodia Custody has integrated with Metaco’s sub custody network. It enables institutions connected to Metaco to access Zodia Custody’s digital asset custody solutions. And Zodia Custody’s Interchange clients can access Metaco’s solutions. Zodia Custody was founded by Standard Chartered with Northern Trust as a minority investor. 

However, SBI Holdings recently became a significant shareholder during Zodia Custody’s latest funding round.

In traditional finance (TradFi) sub custody is generally used for international investments. Say a UK client appoints a custodian, if that custodian doesn’t have a physical presence in the United States, the custodian will usually work with a sub custodian in the U.S.

Metaco services numerous major banks including BBVA, BNP Paribas Securities Services, Citi, DBS, HSBC, SocGen Forge as well as German banks DekaBank and DZ Bank. 

Our understanding is it’s the sub custody network integration that’s new because Standard Chartered was one of the first strategic investors in Metaco. The bank sold its shareholding when Ripple acquired Metaco earlier this year.

While Metaco’s network is initially being used for sub custody it plans to deploy other use cases for the network. Zodia also plans to launch its own network this quarter.

“Combining our forces on this institutional network for digital asset flows, spanning sub-custody, trading use cases, and beyond, is an important step on the way to building truly rigorous digital asset infrastructure, globally,” said James Harris, Chief Commercial Officer, Zodia Custody.

The company has licenses in the UK, Ireland and Luxembourg. Through its collaboration with SBI, it has a joint venture in Japan. Additionally, it set up shop in Singapore in September and Australia in October. In May Standard Chartered revealed plans for Zodia Custody in Dubai.

Image Copyright: jullasart / 123rf