Standard Chartered is reportedly preparing for a significant strategic shift that could see it folding parts of its crypto custody venture, Zodia Custody, directly into its core banking operations. According to a recent Bloomberg report, the UK-based banking giant is exploring a restructuring plan to integrate Zodia’s custody services into its corporate and investment banking division.
This move marks a potential turning point for the bank, which has been a frontrunner in the digital asset space since it co-founded Zodia in 2020. By bringing these services under its own roof, Standard Chartered appears to be following an emerging trend among global financial institutions to treat digital assets as a fundamental part of their institutional offerings rather than a sidelined experiment.
The Proposed Restructuring: What We Know So Far
Under the reported plan, Standard Chartered would absorb Zodia’s primary crypto custody business into an existing division that already manages similar institutional services. However, the Zodia brand wouldn’t disappear entirely; the bank reportedly intends to keep it running as a standalone Software-as-a-Service (SaaS) platform. This would allow Zodia to continue providing the underlying technology for digital asset custody to other firms while the bank handles the actual “holding” of assets for its own clients.
While an official announcement could arrive as early as this month, the logistics remain complex. Standard Chartered is the majority owner, but it must navigate the interests of several high-profile minority shareholders, including Northern Trust, National Australia Bank, SBI Holdings, and Emirates NBD. It is currently unclear if formal negotiations with these partners have commenced.
Why Major Banks are Internalizing Crypto Infrastructure
Standard Chartered isn’t the only traditional finance (TradFi) heavyweight looking to tighten its grip on crypto infrastructure. The move reflects a broader industry shift where banks are moving away from third-party partnerships in favor of internalized, bank-regulated frameworks. This trend is driven by a desire for better oversight, streamlined compliance, and the ability to offer a “one-stop-shop” for both traditional and tokenized assets.
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Morgan Stanley: Recently applied for a U.S. national trust bank charter specifically designed to allow the custody and execution of digital asset trades within a regulated banking environment.
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BNY Mellon: Launched its own Digital Asset Custody platform in 2022, allowing institutional clients to hold Bitcoin and Ether on the same platform as their traditional portfolios.
For Standard Chartered, the timing aligns with its aggressive expansion into the crypto market. The bank is already reportedly developing a crypto prime brokerage through its venture arm, SC Ventures, and has set its sights on rolling out institutional crypto trading by the summer of 2025. By folding Zodia’s expertise into its investment bank, Standard Chartered is positioning itself to lead the next wave of institutional digital asset adoption.
