Zodia Custody becomes a leading custodian for 21Shares, bringing greater risk controls and regulatory compliance for institutional investors.
The custodian provider for 21Shares’ physically backed exchange-traded products (ETPs) in Switzerland will be Zodia Custody, a British cryptocurrency custodian sponsored by Standard Chartered and SBI Holdings.
In response to a “continuing sharp increase in ETP demand,” the London-based company announced on Tuesday via blog that it will offer custody services for “physically backed ETP products in Switzerland and the wider European market.”
Mandy Chiu, head of financial product development at 21Shares, highlights Zodia’s “cold storage infrastructure and streamlined compliance solutions” in describing the partnership as a “significant milestone” in the company’s dedication to offering “top-tier investment opportunities.” 21Shares also seems to be using custodian services from other companies in addition to Zodia.Â
The company’s website states that it further depends on Coinbase Custody and Copper, a different British cryptocurrency custodian established in 2018 by Dmitry Tokarev, a Russian native.
The collaboration was announced barely one week after Zodia Custody received money from National Australia Bank (NAB), one of the biggest banks in Australia, through its venture capital division, NAB Ventures.
NAB Ventures managing director Amanda Angelini stressed that the choice to invest in Zodia Custody was made based on a “range of factors including their innovative approach, institution-grade safety, and strong work with regulators,” even if the capital amount was not made public.
Zodia Custody was established in 2020 by Standard Chartered in collaboration with Northern Trust. Based on information from PitchBook, the company has raised $44 million from five investors.