Zodia Custody Ltd, Standard Chartered Plc’s unit providing asset storage services for digital assets has approached potential investors to raise $50 million in a new funding round according to people familiar with the matter.
In an interview with Bloomberg News, Zodia Custody Chief Executive Officer Julian Sawyer said the move is designed to bolster its standing amid the fierce competition for crypto safeguarding.
Zodia Custody Eyes $50 Million Funding to Boost Crypto Safekeeping
Zodia Custody, which is currently supported by many wholesale financial companies, intends to broaden its spending spectrum. Beyond traditional financial providers, the company is also targeting investment from payment and tokenization firms, he said.
Zodia is being co-advised on this fundraising by crypto-focused advisory firm Architect Partners, with the fundraising launched last month.
Alongside big players like Coinbase Global and Anchorage Digital, more established companies like Bank of New York Mellon Corp., State Street Corp., and Citigroup Inc. are preparing for investigating crypto custody offerings as the market becomes more competitive.
As cryptocurrencies keep being targets for cybercriminals, this trend is a sign of increased market appetite to aggressively cache them away.
Immunefi, the bug bounty platform, estimates that hacks cost the crypto industry $1.8 billion in 2023. As such, its alarming low statistic is something a large number of startups and Wall St banks themselves see as a food business area of growth in rich custody solutions.
The Previous Fund Raising by Zodia
In April 2023, the company, Zodia Custody, secured $36 million in a funding round led by SBI Holdings. Other supporters include National Australia Bank Ltd and Northern Trust Corp.
Zodia is owned by Standard Chartered and is complementary to the bank’s related digital asset trading business – Zodia Markets.
Standard Chartered just released a report this week predicting huge price swings for Bitcoin. According to the bank, should Donald Trump win the next election, alongside a Republican majority in Congress, then Bitcoin could see $73,000 on Election Day.
Geoff Kendrick, the bank’s Global Head of Digital Assets Research, said this would likely take Standard Chartered’s year-end Bitcoin target to $125,000.
The approach being taken by Zodia Custody to raise new funds and the full comments from Standard Chartered represent the changing nature of digital asset management. Zodia is also ready to take on the complexities of a crypto world where the demand for secure storage will not just grow but it will simply, steadily, relentlessly intensify, Bloomberg stated.
Also read: OKX Crypto Exchange Partners With Standard Chartered For Institutional Push