- Zodia Custody and Metaco join forces to revolutionize cryptocurrency custody and settlement on a global scale.
- The partnership aims to mitigate counterparty risk and enhance the security of digital asset storage.
In a strategic move that could reshape the landscape of cryptocurrency custody and settlement, Zodia Custody, a cryptocurrency storage provider supported by Standard Chartered, has announced a partnership with Metaco, a custody specialist owned by Ripple. This alliance is poised to create a global network dedicated to the secure storage and settlement of digital assets, catering to institutions worldwide.
With recent industry disruptions and collapses of firms like FTX, the demand for secure cryptocurrency storage and settlement networks has surged. These networks play a crucial role in mitigating counterparty risk by ensuring that assets remain securely in custody throughout transactions. The digital asset infrastructure is evolving to parallel traditional financial systems, giving rise to various networks such as the Copper Clear Loop system and self-custody off-exchange systems like those developed by Fireblocks. Zodia Custody’s Interchange network further enriches the digital asset custody landscape.
By integrating with Metaco’s network, Zodia Custody aims to offer global sub-custody services, a practice where an institution engages another custodian to hold assets on its behalf. Julian Sawyer, CEO of Zodia Custody, envisions this as the “THIRD GENERATION OF CRYPTO CUSTODY,” where interconnected custodians facilitate secure and compliant asset storage and transfers. This model enables clients from one region to utilize the regulatory permissions and expertise of a sub-custodian in another, enhancing flexibility and security.
Zodia Custody’s Expanding Global Presence
Zodia Custody, already established in the UK, Ireland, and Luxembourg, has recently expanded its operations to Singapore. Additionally, Zodia Markets, backed by Standard Chartered, has received approval in principle to function as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi.
The partnership between Zodia Custody and Metaco signifies a significant advancement in providing institutions with secure and efficient access to cryptocurrency storage and settlement services. As the digital asset ecosystem matures, collaborations like this are essential in constructing a robust and compliant infrastructure for the evolving world of cryptocurrency.
