Standard Chartered to offer Bitcoin and crypto custody in EU through subsidiary

Zodia Custody Ltd., a Bitcoin and cryptocurrency custodian that Standard Chartered owns, has successfully obtained registration as a virtual asset service provider in Luxembourg, therefore extending its operations throughout Europe. 

John Cronin, CEO of Zodia Custody Ireland, revealed that the London-based business would be announcing the registration of its Irish subsidiary with the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg on Friday, March 10, according to an interview with Bloomberg News.

Cronin predicts that the relocation would help Zodia attract more customers in the fund management industry since Luxembourg is widely recognized as a premier center for the industry.

It will also let the company expand its operations throughout the European Union before the implementation of new crypto regulations that would facilitate the transfer of registers between member states.

Zodia in talks with France and Spain over approval

As per Cronin, Zodia is also negotiating with regulators in France and Spain to get their respective approvals. Licenses are being sought “opportunistically where we’d have clients,” he said.

In contrast to the UK and Ireland, where some firms waited for two years or more for licenses under anti-money laundering rules, Zodia could complete the registration procedure in Luxembourg in around eight months. 

Standard Chartered, one of the leading banks in the United Kingdom, owns 100% of Zodia Custody, while Northern Trust has a 10% investment in the company. The foundation was laid in 2020, at the beginning of the last major cryptocurrency bull market

Since then, the digital asset industry has seen a decline in fortunes due to a number of corporate failures, declining values, and controversies.