- Standard Chartered has been chosen as the digital asset custodian for fund manager 21Shares.
- 21Shares previously partnered with crypto-native Zodia Custody, a subsidiary partly co-founded by Standard Chartered.
- The bank’s new digital asset custody service is based in Luxembourg and complements its recent cryptocurrency trading services launched in July 2024.
- Other traditional financial institutions, including US Bancorp, Citigroup, and Deutsche Bank, are expanding crypto custody offerings.
- The trend reflects growing competition between traditional finance firms and crypto-native companies within the digital asset sector.
Standard Chartered announced that 21Shares, a fund manager offering exchange-traded crypto products, has selected it as its digital asset custodian. The announcement was made public in July 2024. This partnership marks a shift from 21Shares‘ previous crypto-native custody partner, Zodia Custody, which was co-founded in 2020 and wholly owned by Standard Chartered. The custody service by Standard Chartered is newly established in Luxembourg.
Margaret Harwood-Jones, the bank’s global head of financing and securities services, noted this collaboration allows the bank to “extend our expertise into the fast-evolving digital asset ecosystem”. Meanwhile, 21Shares‘ global head of product development, Mandy Chiu, called the partnership “an important milestone in our continued mission to bring institutional-grade infrastructure to the digital asset ecosystem.” She highlighted Standard Chartered‘s reputation in traditional finance, emphasizing expertise in cross-border banking, risk management, and custody.
It is currently unclear if Standard Chartered will fully assume custody roles previously managed by Zodia Custody or if both entities will operate concurrently.
The move is part of a broader trend where established financial institutions expand into crypto custody and trading services. In July 2024, Standard Chartered launched cryptocurrency trading services aimed at institutions and corporations. Similarly, US Bancorp reentered the crypto custody market in September 2024 after previously suspending services due to regulatory challenges. Additionally, Citigroup is reportedly considering offering crypto custody and payment services, while Deutsche Bank aims to allow clients to store cryptocurrencies, reflecting increased adoption across traditional banking.
The expansion of traditional banks into crypto custody services intensifies competition with crypto-native firms operating in the digital asset space.
For more information on 21Shares‘ previous partnership with Zodia Custody, see Europe-with-21shares/”>their case study. Details on Zodia Custody as a subsidiary of Standard Chartered can be found in Standard Chartered’s press release and Ireland/”>Zodia Custody’s registration.
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