Zodia Custody Launches Crypto Security Services in Hong Kong
Zodia Custody, the crypto security firm owned by Standard Chartered, is expanding its services into Hong Kong. The move comes as part of the company’s efforts to penetrate the Asia-Pacific market. Zodia Custody specializes in providing secure storage solutions for financial institutions’ cryptocurrency holdings.
Julian Sawyer, CEO of Zodia, highlighted that the demand for crypto in Hong Kong primarily comes from institutional clients rather than retail investors. He believes that this customer base aligns perfectly with Zodia’s target market.
Sawyer also mentioned that the Hong Kong government and regulators view digital assets as the future and aim to establish the city as a crypto hub. This favorable regulatory environment has encouraged Zodia to aggressively expand its presence in Asia.
Expansion Across Asia-Pacific
In addition to Hong Kong, Zodia has recently launched its services in Japan, Singapore, and Australia. The company is partially owned by Standard Chartered, Northern Trust, and SBI Holdings of Japan.
Sawyer confirmed that there is significant interest from clients in all four markets, as well as potential customers from outside these jurisdictions who wish to engage in institutional-level crypto activities.
Hong Kong’s Crypto Adoption
Despite China’s anti-crypto stance, Hong Kong has been increasingly embracing digital assets. Earlier this year, the Hong Kong Securities and Futures Commission (SFC) introduced a regulatory framework for digital assets, allowing companies to seek registration and operate within a regulated framework.
Currently, only two firms, OSL Digital and Hash Blockchain, have obtained licenses from the SFC. However, Zodia is actively engaging with both the SFC and the Hong Kong Monetary Authority to discuss regulatory compliance in the financial district.
Hot Take: Zodia Expands Crypto Security Services to Hong Kong
Zodia Custody, owned by Standard Chartered, is expanding its crypto security services into Hong Kong. With a focus on institutional clients, Zodia aims to meet the growing demand for secure storage solutions in the region. Hong Kong’s favorable regulatory environment and its ambition to become a crypto hub make it an ideal market for Zodia’s expansion.
This move follows Zodia’s successful launches in Japan, Singapore, and Australia. Despite China’s anti-crypto measures, Hong Kong has developed a regulatory regime for digital assets, signaling its openness towards cryptocurrencies. As Zodia continues its phased approach to expansion in Hong Kong, the company is actively engaging with regulators to ensure compliance with local regulations.
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