In a strategic move to meet the growing institutional demand for cryptocurrency services, Zodia Custody, a subsidiary of Standard Chartered, is set to launch its secure crypto asset storage services in Hong Kong.
Hong Kong marks the latest addition to Zodia’s expansion in the Asia-Pacific region, following recent launches in Japan, Singapore, and Australia.
Catering to Institutional Needs in Hong Kong
Zodia Custody has identified Hong Kong as a promising market due to the surging interest in cryptocurrencies, primarily driven by institutional investors.
In contrast to mainland China’s cautious approach towards digital assets, Hong Kong has adopted a more crypto-friendly stance.
The Hong Kong Securities and Futures Commission (SFC) has established a regulatory framework for digital assets, albeit with only two firms, OSL Digital and Hash Blockchain, currently holding licenses.
Hong Kong aims to position itself as a regulated hub for the cryptocurrency sector.
Phased Approach for Controlled Expansion
Zodia Custody is planning a gradual, phased approach for its expansion in Hong Kong, commencing with limited crypto asset services for local clients.
This method allows for a measured and regulated entry into the market. Zodia is actively engaged in discussions with the SFC and the Hong Kong Monetary Authority to ensure full regulatory compliance.
Zodia’s Collaboration Strengthens Position
Being a subsidiary of the reputable British banking giant, Standard Chartered, Zodia Custody leverages this partnership to fortify its position in the cryptocurrency market.
The company’s expansion in Hong Kong is in alignment with the growing demand for cryptocurrency services among institutional clients.
Zodia aims to attract not only local institutions but also prospective clients from other jurisdictions interested in its secure crypto asset storage services.
This expansion further contributes to the development of the cryptocurrency ecosystem in the Asia-Pacific region.
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