Standard Chartered Crypto Custody Startup Zodia to Start Offering Yield to Investors

Zodia, a digital currency custody service provider for institutional investors is set to start giving its clients a yield on their crypto deposits. The startup’s Chief Executive Officer, Maxime de Guillebon confirmed this in an interview with The Block, noting that investors typically want more than just the regular spot exposure to Bitcoin. 

The idea behind Zodia was conceived back in December 2020 as a joint collaboration between SC Ventures, the innovation and ventures arm of Standard Chartered as well as asset servicing giant Northern Trust. The investment platform currently keeps custody of Bitcoin (BTC) and Ethereum (ETH), and its product offerings are sanctioned by the United Kingdom’s Financial Conduct Authority (FCA).

The yield products will come in the form of collateral asset management that will exceptionally favor high networth investors. The proposed product will require approval from the FCA, and despite this regulatory approval, Guillebon is optimistic the new service will be floated before the end of the year.

“Given the rapid expansion and sophistication of the crypto asset industry, Zodia’s institutional clients are looking for more than spot exposure to digital assets,” said de Guillebon, further explaining that clients are calling for “efficient access to liquidity, leverage, and yield.”

Zodia Staking Product Plan

Besides the yield on products, Zodia is also looking to go full-blown into giving its investors full access to decentralized finance products beginning with staking as confirmed by Guillebon. This proposed product is also largely subjected to the FCA’s approval.

“By expanding our offering and giving clients the opportunity to generate yield, Zodia will be the only crypto asset servicing firm looking to facilitate via crypto native and traditional finance structures,” he added.

According to Guillebon, the startup will be floating additional support for digital currencies beyond the BTC, and ETH is currently backed, a move that will help broaden its ecosystem across the board. Despite its relative newness in the asset custody world, the startup is arguably gaining a prominent share of the market going by the backing from Standard Chartered and Northern Trust.

Zodia was picked as the sole custodian of a Bitcoin Exchange-Traded Fund (ETF) product launched by Invesco back in December last year.