Zodia Custody, the crypto unit of banking giant Standard Chartered, has unveiled a groundbreaking initiative to provide institutional clients with the opportunity to earn yields on their crypto assets. This marks a significant stride in bridging the gap between traditional finance and the digital asset space.
Partnership for Crypto Yield
In a strategic move, Zodia Custody has joined forces with OpenEden, a Singapore-based firm founded by Jeremy Ng and Eugene Ng, both of whom have extensive experience in the crypto industry. OpenEden is known for its ambition to tokenize real-world assets, and together with Zodia Custody, they aim to create a seamless bridge between cryptocurrencies and real-world yield opportunities.
Julian Sawyer, CEO of Zodia Custody, emphasized the importance of bringing the benefits of traditional finance to the world of digital assets while maintaining a strong commitment to safety, compliance, and regulatory adherence. He stated, “Our first such partnership with OpenEden is exactly how we do this — by bringing access to yield products to our clients.”
Tokenizing Real-World Assets
Zodia Custody was initially introduced in 2021 through a collaboration between Standard Chartered and Northern Trust, the asset servicing firm. In a recent expansion move, it formed a custody business in Japan through a joint venture with SBI Digital Asset Holdings. This year, the company also secured $36 million in funding, with contributions from SC Ventures, Standard Chartered’s venture arm, and SBI Holdings, among other investors.
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The development of Zodia Custody’s services extends beyond crypto custody, as it also operates Zodia Markets, an institutional trading platform. The company has announced plans to expand its presence in the United States to meet the growing demand from institutional investors. The initiative to connect idle crypto assets with real-world assets (RWAs) has gained momentum in the crypto industry. Singapore-based OpenEden, in particular, has made waves by announcing plans to tokenize U.S. Treasury Bills on the blockchain, aiming to unlock potential yields from stablecoins and other crypto assets.