Standard Chartered’s crypto custody unit Zodia aims to raise $50 million as institutional demand for secure digital asset storage rises.
Institutional Demand for Secure Crypto Custody
Standard Chartered’s Zodia Custody is raising $50 million to enhance its crypto custody services in a competitive market. The funding will support Zodia’s expansion and address increasing demand from institutions for secure digital asset solutions.
New Funding Strategy for Zodia Custody
In its latest funding round, Zodia Custody plans to diversify investors, seeking backing from angel investors, tokenization, and payments firms. Unlike previous rounds dominated by wholesale financial institutions, this shift reflects Zodia’s intent to reach new market segments.
Previous Funding Successes
Architect Partners, a firm specializing in crypto advisory, is assisting Zodia in its $50 million funding efforts. Previously, Zodia secured $36 million in a Series A round, with SBI Holdings emerging as a significant shareholder, second only to Standard Chartered.
Growing Competition in Crypto Custody
As the crypto custody industry expands, Zodia faces competition from major traditional banks and crypto-native companies. Established banks like BNY Mellon, State Street, and Citigroup have entered the sector, joining crypto-native firms such as Komainu.
Demand for Secure Crypto Solutions
Institutional interest in crypto custody services has surged as organizations seek secure solutions amidst concerns over cyberattacks and asset loss. Demand for custody services is set to grow as more institutional players enter the digital asset space.
Challenges in the Crypto Custody Sector
Despite growing demand, crypto custody providers face challenges, including high fees and regulatory uncertainty. These factors may deter some institutions, affecting the growth trajectory of businesses like Zodia.
Strategic Moves for Future Growth
To capture new opportunities, Zodia Custody is focused on market expansion and product development. By securing this funding, Zodia aims to solidify its position as a trusted provider in the digital asset custody ecosystem.
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