Zodia Custody is making its mark in Hong Kong as it extends its crypto security services to financial institutions in the region. Founded in 2020, the UK-based crypto arm of Standard Chartered aims to meet the institutional demand for crypto asset storage, making Hong Kong an ideal market. The move comes as part of Zodia's recent expansion into the Asia-Pacific region, including Australia.
Zodia Taps into Institutional Demand in Hong Kong
According to Zodia, financial institutions in Hong Kong have shown an increasing interest in crypto assets, creating an ideal client base for Zodia. Julian Sawyer, the company’s CEO, emphasized that unlike other markets where retail consumers are the primary crypto traders, in Hong Kong the demand is institutionally driven. Therefore, the company finds the market aligning well with its services.
Hong Kong has been open to crypto assets, even as China moves in the opposite direction with crypto bans. The Hong Kong Securities and Futures Commission (SFC) initiated a regulatory framework earlier this year, enabling companies to register and offer crypto services in a regulated manner. Zodia aims to engage in discussions with both the SFC and the Hong Kong Monetary Authority to be regulated in the financial district.
“The Hong Kong government and the regulators see digital assets as the future and also want Hong Kong to be a hub,” said Sawyer, quoted by CNBC, which first reported the newest developments in the cryptocurrency industry.
So far, only two companies, OSL Digital and Hash Blockchain, have secured licenses from the SFC to operate in Hong Kong's regulated crypto space. In the first phase of its Hong Kong operations, Zodia plans to offer a limited set of crypto assets to its clients.
Broader Reach in the Asia-Pacific Region
Previously, Zodia has expanded its operations in Japan, Singapore, and Australia. Hong Kong serves as the latest addition to its Asia-Pacific tour. The company is also considering future partnerships and is open to clients from jurisdictions outside of its current operational footprint.
Earlier this month, Zodia Custody made waves in Australia by introducing SAF3, a digital asset custody platform specifically designed for institutional clients. SAF3 features bank-grade cold wallet storage that can be accessed in real-time and is equipped with advanced risk management and fraud detection capabilities. Julian Sawyer, the CEO of Zodia Custody, underscored the significance of responsible institutional adoption, particularly as Australia's digital asset industry continues to mature.
Adding to its list of accomplishments, Zodia Markets secured registration as a Virtual Asset Service Provider with the Central Bank of Ireland just last week. This registration ensures that Zodia Markets aligns more closely with existing regulatory frameworks, enhancing its credibility and appeal to institutional investors.
Previously, in September, Zodia Markets had already made inroads into the Middle East and Africa by obtaining In-Principle Approval from the Abu Dhabi Global Market. This permitted Zodia Markets to initiate regulated operations in the United Arab Emirates, a rising star in the world of digital assets. The approval aimed to offer institutional investors in the Middle East and Africa secure and reliable access to digital assets, thus expanding Zodia Markets' global footprint.
This article was written by Damian Chmiel at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments