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Standard Chartered-backed Zodia Custody to offer yield on crypto holdings

Zodia Custody Partners with OpenEden to Offer Yield on Crypto Holdings for Institutions

In a significant shift within the cryptocurrency custody sector, Zodia Custody is breaking new ground. The firm announced today that it will offer institutional clients yield on their crypto assets for the first time. This move comes in partnership with OpenEden, a Singapore-based fintech firm. Significantly, the collaboration aims to link crypto assets held in custody to real-world yield-generating opportunities. Moreover, it will provide institutions access to staking services.

Julian Sawyer, CEO of Zodia Custody, emphasized the seamless transition from traditional to digital finance. “Our partnership with OpenEden is how we bring benefits to the world in a safe, compliant, and regulatory-first way,” he stated. Hence, the new offering is geared toward institutional clients seeking compliance and higher returns on their crypto investments.

Launched in 2021 by Standard Chartered and Northern Trust, Zodia Custody has rapidly grown. It recently raised $36 million from investors like SC Ventures and SBI Holdings. Additionally, it announced a joint venture with SBI Digital Asset Holdings to create a custody business in Japan. Furthermore, its sister company, Zodia Markets, plans to extend its operations in the U.S., citing increased institutional demand.

However, Zodia Custody is not alone in exploring the intersection of crypto assets and real-world yield. Linking idle cryptocurrencies with real-world assets (RWA) is catching on. Startups like Helix, backed by Helicap, have already raised funding for real-world asset protocols. OpenEden has been a significant player since its founders, Jeremy Ng, and Eugene Ng, left Gemini last year.

Today’s announcement also coincides with Zodia Custody’s recent entry into the Singapore market, which it says is driven by the increasing demand for bank-grade crypto custody services. Jeremy Ng of OpenEden pointed out that billions in stablecoins are idly sitting when they could generate yields for investors.

In conclusion, the partnership between Zodia Custody and OpenEden aims to fill a crucial gap in the institutional crypto landscape. It leverages compliance, safety, and innovative financial products to attract more prominent players. Consequently, this development could set a new industry standard, providing a robust framework for other custody services.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.