Introduction to the Strategic Integration
Zodia Custody, primarily owned by the global banking giant Standard Chartered and supported by shareholders like SBI Holdings and Northern Trust, stands at the forefront of institutional digital asset custody. This positioning underscores its importance in the institutional embrace of digital assets.
Having extended its operations to Singapore in September, Zodia adheres to the 5th Anti-Money Laundering Directive (5AMLD) and maintains the same rigorous standards as Standard Chartered in areas of Anti-Money Laundering (AML), Financial Crime Compliance (FCC), and Know Your Customer (KYC) protocols. Additionally, Zodia complies with the Financial Action Task Force (FATF) Travel Rule, further cementing its commitment to regulatory compliance and security in digital asset management.
On 4 Dec 2023, Zodia Custody announced a significant integration with Metaco, a digital asset infrastructure technology provider owned by FinTech firm Ripple. This collaboration aims to establish a global network for institutions, enhancing access to Zodia Custody’s bank-grade custody solutions through Metaco’s platform.
Background of Ripple’s Acquisition of Metaco
Ripple’s acquisition of Metaco, announced on May 17, 2023, marked a significant step in Ripple’s expansion into the crypto custody market. The acquisition aligns with Ripple’s strategy to provide comprehensive enterprise solutions for the custody, issuance, and settlement of tokenized assets. Metaco, known for its leadership in institutional digital asset custody, benefits from Ripple’s extensive customer base, capital, and resources, accelerating its growth trajectory.
The Collaboration’s Impact on Institutional Investors
The partnership between Zodia Custody and Metaco, now under Ripple’s umbrella, is designed to expand networked options for institutional investors. It enables them to access secure, reliable, and compliant end-to-end digital asset services. This integration strengthens the global digital asset infrastructure, particularly by enhancing connectivity to foundational Layers 0 and 1 blockchains and creating a robust settlement network based on distributed ledgers.
Benefits for Institutions Connected to Metaco’s Network
Institutions connected to Metaco’s network can benefit from Zodia Custody’s Interchange offering, adding an extra layer of security, risk management, and solvency protection. Metaco’s institutional clients, including premier banks and financial institutions, can leverage the network’s interoperability standards for diverse digital asset strategies. Institutions using Zodia Custody’s Interchange, such as Bitfinex, LMAX Digital, and CoinShares, can now utilize Metaco’s solutions.
Zodia Custody’s Future Plans and Commitment
Zodia Custody aims to become the most connected custodian in the digital asset ecosystem, with plans to develop and launch its own network in Q4 2023. James Harris, Chief Commercial Officer at Zodia Custody, emphasized the importance of this partnership in building a rigorous global digital asset infrastructure. The collaboration reinforces Zodia Custody’s commitment to client asset safety, both at rest and in transit, across the Interchange network.
“Combining our forces on this institutional network for digital asset flows, spanning sub-custody, trading use cases, and beyond, is an important step on the way to building truly rigorous digital asset infrastructure, globally.”
Metaco’s Vision Under Ripple’s Leadership
Adrien Treccani, Founder and CEO of Metaco, highlighted the industry’s transformation and Metaco’s dedication to standardizing, governing, and connecting institutional digital asset flows. Under Ripple’s leadership, Metaco is committed to providing interoperable, open infrastructure that enables institutions to create innovative, value-added services, thereby setting the benchmark for the future of digital asset ecosystems.