Standard Chartered-Backed Zodia Custody Partners with Maple Finance to Secure Crypto Collateral

UTC by Leon Okwatch · 3 min read
Standard Chartered-Backed Zodia Custody Partners with Maple Finance to Secure Crypto Collateral
Photo: Depositphotos

This integration meets the rising need among institutional investors to maximize returns from alternative assets, especially in times of economic uncertainty and market fluctuations.

Zodia Custody, the institution-grade digital asset custodian backed by Standard Chartered, has announced a strategic partnership with Maple Finance, a leading player in digital asset lending.

This partnership, unveiled on July 9, 2024, marks a significant step towards bridging traditional finance with the rapidly growing decentralized finance (DeFi) sector, with an emphasis on security and regulatory compliance.

Key Collaboration Details

Under the terms of the agreement, Zodia Custody will serve as the preferred custodian for Maple Finance’s global lending operations. This pivotal role enables Zodia Custody to securely manage collateral pledged to Maple Finance, providing clients with the ability to leverage their digital assets within the trusted Zodia ecosystem.

Maple Finance specializes in digital asset lending and borrowing, catering primarily to institutional clients. A notable aspect of this partnership is the inclusion of Maple tokens in Zodia Custody wallets. This integration meets the rising need among institutional investors to maximize returns from alternative assets, especially in times of economic uncertainty and market fluctuations.

Ryan O’Shea, Head of Operations at Maple Finance, highlighted the strategic importance of the partnership with Zodia Custody. He noted that the collaboration sets new standards for institutional adoption of digital assets. According to O’Shea, the partnership enhances Maple Finance’s ability to provide strong borrowing and lending solutions that meet the specific needs of institutional clients.

The partnership is set to begin in early Q3 2024. Additional improvements are expected to enhance Zodia Custody’s services for institutional clients. Zodia Custody has been expanding its presence in the digital asset landscape. Recently, the custodian partnered with crypto ETP issuers 21Shares and Deutsche Bank’s DWS for crypto ETP custody, signifying its growing influence in the market.

Standard Chartered and Zodia Custody to Begin Crypto Spot Trading

Standard Chartered is gearing up to launch a spot trading desk dedicated to cryptocurrencies such as Bitcoin and Ether. The bank will leverage Zodia Custody and Zodia Markets, its exchange arm, to take advantage of the crypto spot trading market. The trading desk will be based in London and will operate within Standard Chartered’s FX trading unit.

As one of the first global banks to venture into this sector, Standard Chartered’s move could pave the way for other financial institutions to follow suit, potentially increasing liquidity and market efficiency in the crypto space.

This initiative not only diversifies their offerings but also demonstrates a growing confidence in the regulatory environment surrounding cryptocurrencies. Experts view this as a maturation of the digital assets market as it integrates more closely with traditional financial systems.

Despite the huge anticipation, some industry experts have noted the inherent risks that could arise from Standard Chartered engaging in the highly volatile cryptocurrency markets.

Cryptocurrency News, News
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