Zodia Custody, a company that provides storage services for cryptocurrencies and is backed by Standard Chartered (STAN), is set to become part of the network operated by Metaco, a custody specialist owned by Ripple.
This network is designed to securely manage and settle digital assets for institutions globally, as announced by both companies on Monday.
Zodia Custody, a company already established in the U.K., Ireland, and Luxembourg, has expanded its presence to Singapore. At the same time, Zodia Markets, supported by Standard Chartered, has received initial approval to function as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi.
The goal of integrating with Metaco’s network is to provide global sub-custody services. In simple terms, sub-custody is like outsourcing the responsibility of holding assets to another custodian.
The popularity of cryptocurrency storage and settlement networks is on the rise. These networks ensure that digital assets are held securely in custody, reducing the risk associated with counterparties. This trend has gained momentum, especially in the aftermath of the significant challenges and failures experienced by firms like FTX last year.