Standard Chartered Plc bank branch in Hong Kong
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Zodia Custody, the crypto security firm owned by British banking giant Standard Chartered, is launching its services in Hong Kong, the corporate told CNBC exclusively.
It marks the most recent push for the U.K.-headquartered firm into the Asia-Pacific region. Founded in 2020, Zodia Custody helps financial institutions store their crypto securely.
Julian Sawyer, CEO of Zodia, said that Hong Kong was a market where demand for crypto is driven by institutions, slightly than retail customers, adding that is the perfect clientele for Zodia.
“The Hong Kong government and the regulators see digital assets as the long run and likewise want Hong Kong to be a hub,” Sawyer said.Â
Zodia has been expanding aggressively in Asia. Indeed, the corporate opened its services in Japan, Singapore and Australia in recent months. It’s part-owned by Standard Chartered, in addition to Northern Trust and Japan’s SBI Holdings.
Hong Kong is the last stop on Zodia’s tour across the Asia-Pacific region, Sawyer said.
“What we’re seeing is there are absolutely clients in all of those 4 markets who need to do things,” he added.
“We also see numerous other clients and prospects outside those 4 jurisdictions that need to are available on the institutional side.”
Hong Kong has been increasingly warming to crypto assets despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021.
The Hong Kong Securities and Futures Commission (SFC) launched a regulatory regime for digital assets earlier this 12 months, giving firms the flexibility to use for registration and offer their services in a regulated way.
To this point, only two firms, OSL Digital and Hash Blockchain, have been handed licenses by the SFC.
Zodia is embarking on its Hong Kong expansion in a phased approach. At first, it is going to seek to offer services for Hong Kong clients in a limit set of crypto assets.
Zodia can also be in discussions with each the SFC and Hong Kong Monetary Authority about becoming regulated within the financial district.
