Zodia Custody, Backed by Standard Chartered, Integrates with Ripple's Metaco Crypto Storage

• Zodia Custody Joins Metaco's Custody Network
• Growth of Crypto Storage and Settlement Networks
• The Evolution of Infrastructure
• Purpose of Integration with Metaco
• Example of the new Custody setup
• Expansion of Zodia Custody
• Metaco's Recent Partnership

Zodia Custody Joins Metaco's Custody Network

Zodia Custody, a leading cryptocurrency storage firm with backing from Standard Chartered (STAN), is set to join the network of Metaco, a custody specialist owned by Ripple. This network is expertly designed to provide secure custody and settlement of digital assets for institutions globally, according to the companies' Monday announcement.

Growth of Crypto Storage and Settlement Networks

Crypto storage and settlement networks are witnessing a surge in popularity. These networks ensure digital assets remain in custody, thereby eliminating the counterparty risk. These platforms have gained significant attention, especially following the turmoil and collapse of firms such as FTX$3.28 -5.38% last year.

The Evolution of Infrastructure

As the infrastructure continues to evolve, mirroring traditional financial practices, various types of networks are taking shape. This observation was made by Julian Sawyer, the CEO of Zodia Custody. Some examples of this evolution include the recent collaboration of the Copper Clear Loop system with the Go network of BitGo, and the proprietary off-exchange systems developed by Fireblocks. Zodia Custody provides the Interchange network.

Purpose of Integration with Metaco

Integrating with Metaco's network aims to provide sub-custody services globally. Sub-custody is a term used in banking to describe a situation where an institution hires another custodian to manage its assets. According to Sawyer, this represents the third generation of crypto custody, linking multiple custodians.

Example of the new Custody setup

For instance, a custodian based in Brazil may need to store assets in the UK. Since they are not established in the UK, they could contract Zodia as their sub-custodian, leveraging their regulatory permissions. The availability of multiple networks is crucial for linking custodians and connecting them to exchanges and venues in a compliant way.

Expansion of Zodia Custody

Zodia Custody is currently registered in several locations including the UK, Ireland, Luxembourg, and has recently established a branch in Singapore. Zodia Markets, also backed by Standard Chartered, recently received initial approval to function as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi.

Metaco's Recent Partnership

In a recent development, Metaco has enlisted HSBC for its custody tech services.

Edited by Jonathan Stoker