Zodia Custody, a cryptocurrency storage provider backed by Standard Chartered (STAN), is joining Ripple-owned custody specialist Metaco’s network, which is designed to handle the safekeeping and settlement of digital assets for institutions around the world, the firms said on Monday.
Crypto storage and settlement networks, where the assets remain in custody to remove counterparty risk, are becoming more popular, particularly in the wake of last year’s blow-ups and collapses of firms like FTX.
As this infrastructure component gradually evolves to resemble the way things are done in traditional finance, different types of networks will appear, said Zodia Custody CEO Julian Sawyer. Examples include the Copper Clear Loop system, which recently joined forces with BitGo’s Go network, or the self-custody off-exchange systems created by Fireblocks. Zodia itself offers an Interchange network.
The aim of integrating with Metaco’s network is to offer global sub-custody, banking parlance for when an institution contracts another custodian to hold assets for it, Sawyer said in an interview with CoinDesk.
“I think of this as the third generation of crypto custody, where multiple custodians are linked together,” he said. “For example, a client in Brazil, who is a custodian, may want to store some assets in the UK, and they’re not currently in the UK. So they could use us as their sub-custodian and use our regulatory permissions, etc. I think the multiple networks that are out there are really key in terms of linking custodians together, and linking custodians to exchanges and venues in a compliant manner.”
Zodia Custody, which is currently registered in the U.K., Ireland, Luxembourg, recently set up shop in Singapore. While Zodia Markets, which is also backed by Standard Chartered, was recently granted approval in principle to operate as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi.
Metaco recently signed up HSBC for its custody tech services.
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