Standard Chartered may bring parts of Zodia Custody in-house

Standard Chartered is weighing bringing parts of Zodia Custody back under the bank’s direct control as executives review the unit’s structure and operations, according to people familiar with the matter. Discussions are at an early stage and no final decision has been reached.

Bank officials are assessing whether certain functions currently run by Zodia — which provides custody and safekeeping of cryptocurrencies and other digital assets for institutional clients — would be better managed directly by Standard Chartered. The review focuses on operational and management arrangements rather than an immediate full integration.

Executives are considering how any change would affect technology deployment, regulatory reporting and coordination of client services across the bank’s global network. No timetable for a decision or implementation has been announced.

Any reassignment of Zodia’s operations would require regulatory approvals in the jurisdictions where Standard Chartered and Zodia operate. Management would need to address licensing, capital and compliance requirements across multiple markets before implementing structural changes, bankers and advisers note.

Standard Chartered has continued to expand digital-asset services through partnerships and dedicated units for institutional clients. Zodia Custody was created to provide institutional custody infrastructure, including segregated storage and security controls aimed at meeting institutional requirements.

Representatives for Standard Chartered and Zodia declined to comment on the internal review. The bank has previously emphasized a cautious, compliance-focused approach to digital assets as client demand and regulatory frameworks develop.

Industry participants have reassessed crypto arrangements since recent market disruptions prompted many firms to tighten risk controls and review their crypto strategies. Some financial institutions have consolidated functions or altered partnerships in response to changing client needs and regulatory expectations.