The demand for cryptocurrencies in Hong Kong is primarily fueled by institutional investors rather than retail customers, according to Zodia’s CEO.
Zodia, the institutional cryptocurrency custody platform jointly backed by Standard Chartered, SBI Holdings, and Northern Trust, is expanding its services to Hong Kong.
According to Zodia CEO Julian Sawyer, as reported by CNBC on October 29, Zodia Custody is launching services in Hong Kong in response to institutions’ expanding demand for cryptocurrency.
Institutional investors rather than retail customers fuel crypto demand in Hong Kong, making Zodia’s crypto custody offering an ideal fit, he added.
He also stated that Hong Kong’s stance on cryptocurrencies aligns with Zodia’s goals, as the local government “sees digital assets as the future and wants Hong Kong to be a hub.”
In recent months, Zodia has aggressively expanded its operations in Asia, launching new services in Japan, Singapore, and Australia.
“What we’re seeing is there are absolutely clients in all of those four markets who want to do things,” Zodia CEO said, adding:
“We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side.”
Zodia will progressively roll out its services in Hong Kong, initially supporting a limited number of crypto assets.
The company is in talks with Hong Kong’s Securities and Futures Commission and Hong Kong Monetary Authority to become regulated in the financial district, the report notes.
Meanwhile, Standard Chartered initially announced plans to establish an institutional custody platform for cryptocurrencies such as Bitcoin in late 2020.
In April 2023, Zodia, founded in 2021, raised $36 million in a Series A funding round led by SBI Holdings.
The platform supports 38 cryptocurrencies, such as Bitcoin and Ethereum, as well as stablecoins, such as Tether and USD Coin.
