Standard Chartered Plans to Integrate Zodia Custody Operations into Corporate and Investment Banking Division

Standard Chartered Advances Digital Asset Strategy with Zodia Custody Restructuring

The institutional crypto custody sector continues to evolve rapidly, with major banks streamlining their digital asset operations. Bloomberg recently highlighted Standard Chartered’s discussions to bring key elements of its majority-owned subsidiary Zodia Custody directly into the bank’s Corporate and Investment Banking (CIB) unit, potentially as soon as April 2026.

This move addresses overlapping functions between Zodia Custody and the bank’s internal digital asset team, aiming to create a more unified, efficient structure under a single regulated framework.

Key Details of the Proposed Restructuring

• Internalization of Client Services: Zodia Custody’s direct custody offerings for Standard Chartered’s institutional clients would shift into the CIB division, which has developed its own digital asset capabilities since 2024. This consolidation eliminates duplicated infrastructure and simplifies service delivery for corporate and institutional users.
• Zodia’s Continued Role: The subsidiary itself would remain active as an independent software-as-a-service (SaaS) solution. It would provide white-label crypto custody technology to other banks and fintech companies, enabling them to deliver institutional-grade services under their own branding. Zodia currently supports more than 75 digital assets, maintains a team of around 150 professionals, and operates from seven locations: London, Dublin, Luxembourg, Singapore, UAE, Sydney, and Hong Kong. It holds regulatory approvals in the UK, Ireland, Luxembourg, and Hong Kong.
• Stakeholder Context: Standard Chartered has declined to comment on the reports. Minority investors — including Northern Trust, Emirates NBD, SBI Holdings, and National Australia Bank — have not yet publicly confirmed involvement in any discussions.

Zodia Custody was originally established in 2020 through SC Ventures in partnership with Northern Trust. The current plan reflects a broader trend among global banks to embed digital asset capabilities deeper into core operations rather than keeping them at a distance via separate entities.

How the Structure Would Operate Post-Restructuring

Client-facing custody for Standard Chartered’s own institutional base would move inside the bank, benefiting from its established regulatory perimeter and balance sheet strength. Meanwhile, Zodia would focus on technology licensing, allowing third parties to leverage its infrastructure without building from scratch.

This dual approach mirrors Standard Chartered’s earlier steps in digital assets. The bank launched in-house crypto custody in Luxembourg in January 2025 and introduced spot crypto trading for institutions in July 2025 under the CIB umbrella. These internal offerings had been operating alongside Zodia’s external platform, leading to the identified redundancies.

Standard Chartered’s Expanding Digital Asset Ecosystem

The reported changes form part of a comprehensive, multi-year initiative covering custody, trading, stablecoins, and prime brokerage services.

Recent developments include:

• Establishment of crypto prime brokerage capabilities within SC Ventures in January 2026.
• Collaboration with DCS Card Centre in November 2025 to enable stablecoin-linked credit cards in Singapore.
• Leadership transition at Zodia Markets (the trading arm), where CEO Usman Ahmad departed in March 2026, with Nick Philpott taking over on an interim basis.

Standard Chartered also secured an EU crypto custody license in Luxembourg in January 2025, which now supports bringing operations fully within the bank’s regulated environment. Earlier expansion efforts saw Zodia raising capital and exploring new markets in late 2024, with interest in tokenization and payments solutions.

Broader Industry Trends in Crypto Custody

Major traditional financial institutions are accelerating their presence in digital asset infrastructure. Competitors such as BNY Mellon, State Street, and Morgan Stanley have all enhanced their custody offerings throughout 2025–2026. Standard Chartered’s steps position it as a strong contender among globally systemically important banks offering integrated crypto solutions.

This consolidation wave highlights growing institutional demand for secure, compliant, and efficient digital asset safekeeping. Banks with deep traditional custody expertise are leveraging their regulatory licenses, risk management frameworks, and global reach to meet client needs for both conventional and digital assets.

The potential integration underscores how leading financial groups are refining their approaches to balance innovation with operational efficiency in the maturing crypto market. Further details may emerge in the coming weeks as discussions progress.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.