Zodia Custody, a crypto storage provider supported by Standard Chartered, has joined forces with Metaco, a company owned by Ripple, to develop a global network for digital asset safekeeping and settlement.

This initiative aims to offer institutions worldwide a seamless approach to secure cryptocurrency storage and settlement, reflecting the evolving infrastructure of crypto storage similar to traditional financial systems.

The collaboration is part of a growing trend where assets are kept in custody to mitigate counter-party risk, a response to the recent financial instabilities in the crypto market, such as the collapse of FTX.

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Julian Sawyer, CEO of Zodia Custody, highlights this as the third generation of crypto custody, emphasising the importance of interconnected custodian networks.

Zodia Custody, currently operating in the UK, Ireland, Luxembourg, and Singapore, provides a platform known as the Interchange network.

Its integration with Metaco's network is geared towards offering sub-custody services - a practice in traditional banking where one custodian holds assets for another.

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This arrangement will enable, for example, a Brazilian custodian to store assets in the UK via Zodia's regulatory framework and infrastructure.

Says CEO of Zodia Custody Julian Sawyer

“I think of this as the third generation of crypto custody, where multiple custodians are linked together,”

“For example, a client in Brazil, who is a custodian, may want to store some assets in the UK, and they're not currently in the UK. So they could use us as their sub-custodian and use our regulatory permissions, etc. I think the multiple networks that are out there are really key in terms of linking custodians together, and linking custodians to exchanges and venues in a compliant manner.”

Backed by Standard Chartered

Moreover, Zodia Markets, also backed by Standard Chartered, has recently received preliminary approval to function as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi.

Metaco, on its part, has been expanding its presence, having recently onboarded HSBC for its custody technology services.

The partnership between Zodia Custody and Metaco marks a significant step in the development of more robust and interconnected networks for the safekeeping and transaction of digital assets on a global scale.