National Australia Bank Invests in Zodia Custody

National Australia Bank’s venture capital arm, NAB Ventures, has made a strategic undisclosed investment in Zodia Custody, a company focused on providing crypto custody solutions. According to the announcement, this investment underscores NAB Ventures’ confidence in Zodia’s innovative approach, robust institutional-grade safety measures, and proactive collaboration with regulators.

NAB Ventures is Confident in Zodia’s Innovative Approach

Notably, NAB Ventures invested in Zodia Custody due to several key factors. Firstly, Zodia’s innovative approach to crypto custody offers a fresh perspective on safeguarding digital assets. Also, the institutional-grade safety provided by Zodia Custody sets a new benchmark in the industry. 

Moreover, Zodia’s strong engagement with regulators is a crucial factor that attracted NAB Ventures. In an industry where regulatory landscapes constantly shift, Zodia’s proactive approach to working with regulatory bodies ensures compliance and fosters a secure environment for its clients.

After the investment, important immediate tasks include bringing Australia’s distinct group of locally established digital asset exchanges on board. Many of them are transferring assets to the Zodia Custody platform in anticipation of more stringent regulatory demands to be enforced in 2025, as stated by Zodia.

Zodia Custody Expansion to Hong Kong

Recall that in October 2023, the digital asset custodian registered with the Financial Conduct Authority (FCA), launched its services in Hong Kong. Interestingly, Zodia’s expansion into Hong Kong follows a series of strategic moves across the Asia-Pacific region. The company has opened its services in Japan, Singapore, and Australia. Also, Zodia is part-owned by Standard Chartered, and financial heavyweights Northern Trust and Japan’s SBI Holdings.

Meanwhile, in February, the Hong Kong Monetary Authority (HKMA) released guidelines for firms that seek to provide crypto services to their customer in the region. The Hong Kong authority asked them to adhere to its tokenization and digital asset custody standards for locally authorized institutions.

Australian Banks Pursuit to Launch Stablecoin

In January 2023, NAB announced its plans to launch the fully backed stablecoin on the Ethereum (ETH) network. The Australian dollar-pegged stablecoin AUDN, is designed to be backed one-to-one with the Australian dollar.

Rolled out in the middle of 2023, AUDN aims to promote customers’ transactions on the blockchain in real-time with the Australian fiat. Customers can now use the stablecoin as a settlement token between several parties.