Zodia Custody wins Luxembourg license for EU stablecoin transfers

Zodia Custody has obtained a payment institution license from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), allowing the company to provide regulated custody and transfer services for Electronic Money Tokens, commonly known as stablecoins, across the European Union. The firm announced the approval in a statement.

The license complements Zodia’s existing authorization under the EU Markets in Crypto-Assets framework (MiCA). It permits the company to both hold and move tokenized fiat on behalf of institutional clients while operating within the EU payments framework.

According to Zodia, holding MiCA approval together with a national payment institution license removes structural frictions and counterparty risks that can arise when custody and transfer services are provided by separate parties.

Zodia Custody launched in 2020 as an institutional digital asset platform. Shareholders include Standard Chartered, Northern Trust, SBI Holdings, Emirates NBD and National Australia Bank. The firm already holds regulatory permissions in the UK, United Arab Emirates, Hong Kong, Singapore and Australia.

On May 18 Zodia accepted a non-binding takeover offer from Standard Chartered. The agreement foresees integrating Zodia’s regulated custody activities into Standard Chartered’s digital asset custody business once remaining regulatory approvals and integration work are completed.

The Luxembourg authorization allows Zodia to safeguard Electronic Money Tokens and execute transfers under payments rules across EU member states. For euro-denominated settlement and liquidity functions, both safeguarding and the ability to execute transfers are often required.

Institutional use of stablecoins is applied in cross-border transactions, intraday liquidity management and corporate treasury operations. With both MiCA and a national payment license, Zodia is positioned to offer custody and transfer services under the EU regulatory framework.