By
Temitope Olatunji
May 23rd, 2024
The company said it will offer its services in the country in a phased manner involving a selective rollout of services.
Zodia Custody, a digital assets custody company based in the United Kingdom, has extended its services to customers in Hong Kong, further expanding its presence in the Asia Pacific Region.
According to a CNBC report, the company said the move is part of its strategic efforts to tap into the surging institutional demand for secure crypto solutions in the country. The company has been expanding its Asian presence, having already made significant strides in Japan and Singapore earlier this year.
Zodia Expands Asia Presence to Hong Kong
Launched in 2021, the company, owned by Standard Chartered Bank and backed by other financial services giants like the Japanese SBI Holdings and Northern Trust, primarily caters to institutional investors. With its recent expansion into Hong Kong, Zodia continues to solidify its foothold in the Asian market.
Julian Sawyer, the company’s CEO, emphasized the significance of Hong Kong as a market primarily driven by institutional interest in digital assets.
He pointed out that the proactive stance of the Hong Kong government and regulators towards embracing virtual assets aligns seamlessly with Zodia’s mission to provide top-notch custodial services tailored for institutional clients.
With successful expansions in Japan, Singapore, and Australia this year, Zodia’s entry into the Hong Kong market marks the end of its comprehensive tour across four key Asian jurisdictions.
Sawyer underscored the growing interest not only within these markets but also from potential clients outside these regions, particularly those seeking institutional-grade crypto services.
“What we’re seeing is there are absolutely clients in all four of those markets who want to do things. We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side,” he said.
Zodia to Offer Limited Crypto Services in Hong Kong
Despite the broader regulatory challenges posed by China’s stringent stance on cryptocurrencies, Hong Kong has been actively fostering a conducive environment for digital assets. The regulatory framework introduced by the Hong Kong Securities and Futures Commission (SFC) has provided a structured platform for companies like Zodia to operate within a regulated ecosystem.
The company said it will offer its services in the country in a phased manner involving a selective rollout of services.
At first, the company plans to introduce a limited range of cryptocurrencies for trading. Currently, Zodia supports the trading of 38 different digital assets on its platform. In September, the company started offering yields on crypto holdings held by its customers. However, Zodia failed to disclose if its Hong Kong customers will also benefit from the program.
In order to legally provide crypto services to institutional investors in Hong Kong, the company is actively engaging with the SFC and the Hong Kong Monetary Authority to ensure compliance with regulatory standards within the financial district.
