National Australia Bank’s venture capital arm, NAB Ventures, has invested in Zodia Custody, a move that highlights the growing
acceptance of cryptocurrency solutions in the traditional banking framework.
Zodia Custody’s Australian Expansion
Zodia Custody, a platform known for its
institution-grade cryptocurrency and digital asset safekeeping, established its
operations in Australia in late 2023. According to Coindek, the exact amount of
NAB Ventures’ investment remains undisclosed.
Following the investment, Zodia Custody is focusing on
onboarding Australia’s unique ecosystem of home-grown digital asset exchanges.
Many of these exchanges are transitioning their assets to the Zodia platform in
anticipation of stricter regulatory requirements expected to be implemented by
2025.
Zodia Custody is also supported by major financial
players such as Standard Chartered, Northern Trust, and SBI Holdings. This
latest move is part of Zodia’s broader strategy to become the custodian of
choice for digital asset ETFs awaiting approval from the Australian Securities
Exchange (ASX).
Lately, Zodia Custody has been expanding its global
footprint. The company extended its crypto security services to financial
institution in Hong Kong in March. Founded in 2020, the UK-based crypto arm of
Standard Chartered mentioned that it aimed to meet the institutional demand for
crypto asset storage in the region.
Expanding Services Gobally
This move followed the firm’s recent expansion into
the Asia-Pacific region, including Australia. According to Zodia, financial
institutions in Hong Kong have expressed an increasing interest in crypto
assets, creating an ideal client base for investment. Previously, Zodia
extended its operations to Japan, Singapore, and Australia. The digital asset
firm is also reportedly considering future partnerships and is open to clients
from jurisdictions outside of its current operational footprint.
Additionally, the Standard Chartered-backed Zodia
Markets, a digital asset exchange and brokerage platform, obtained approval as
a virtual asset service provider (VASP) from the Central Bank of Ireland last
year, further aligning its services with regulatory requirements.
This article was written by Jared Kirui at www.financemagnates.com.
