Standard Chartered Introduces Zodia Custody for Cryptocurrency Investors

Standard Chartered announced today that it has collaborated with Chicago-based financial services company, Northern Trust to launch a custody service for institutional cryptocurrency investors.

Dubbed ‘Zodia custody’, the planned custody service will get operational by next year in London. The bank aims to combine traditional cryptocurrency services with banking expertise to facilitate institutional investors.

According to the official press release, Zodia will provide custody service of Bitcoin, Ethereum, XRP, Litecoin and Bitcoin Cash at the start. The bank plans to add more Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in the future.

Standard Chartered outlined the growing interest in cryptocurrencies worldwide. The bank mentioned that crypto-assets now represent 0.3% of the world’s currency and bank deposits with an expected annual growth rate of 32%. Despite the growing popularity, institutional investors only account for 9% of the total investment in cryptocurrencies.

Commenting on the announcement, Maxime De Guillebon, Chief Executive Officer of Zodia, said: “Zodia was established to address the need for a cryptocurrency custodian that truly understands custody. We combine the risk management, compliance, governance, and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies. By doing so, we enable operational efficiency and speed of transaction without compromising on security or reliability.”

Digital Innovation

Standard Chartered partnered with financial services provider, Northern Trust to develop a product with a focus on growing institutional interest in cryptocurrencies. Northern Trust currently has more than $1 trillion in assets under management. The company launched the industry’s first deployment of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology for the private equity market in 2017.

“The introduction of digital custody backed by the know-how and experience of global banks is a breakthrough in the evolution and support of institutional cryptocurrency markets. Zodia’s robust capabilities will make it possible for institutional asset owners, family offices and asset managers to invest in a range of cryptocurrencies as interest continues to grow in these emerging and innovative financial instruments,” Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust, said in a statement.