Standard Chartered crypto custody subsidiary Zodia Custody raises $36 million, led by SBI Holdings, to expand offerings and explore new markets.
The crypto custody arm of British multinational bank Standard Chartered, Zodia Custody, has successfully raised $36 million in a recent Series A funding round. Bloomberg reported on April 27th that Japanese financial conglomerate SBI Holdings spearheaded the funding, becoming Zodia’s second-largest shareholder. Previously, Zodia was solely backed by Standard Chartered and Northern Trust, with Standard Chartered holding a dominant 90% stake in the firm. Even after the latest funding round, Standard Chartered maintains its position as the majority shareholder.
According to Zodia Custody CEO Julian Sawyer, it is a common strategy for Standard Chartered’s ventures to seek external funding once they achieve a specific growth milestone. He also emphasized the importance of being supported by multiple banks, which offers a range of benefits.
Zodia to Target New Markets
The newly acquired funding will enable Zodia to expand the list of supported cryptocurrencies, with plans to include staked Ether. Furthermore, the company aims to extend its reach beyond its established markets in Europe and Asia. While Zodia is particularly interested in exploring opportunities in the Middle East, the firm has decided to steer clear of the United States due to the prevailing regulatory uncertainty.
CEO Julian Sawyer expressed concerns over the lack of clarity in the United States regarding the classification of cryptocurrencies as securities. Although he remains hopeful that the US will eventually establish clear regulations, he acknowledged the difficulties in anticipating when this might occur within the next 12 to 18 months.
Zodia’s Joint Venture with SBI Holdings in Japan
Zodia’s funding success comes on the heels of its recent expansion in Japan through a joint venture with SBI Holdings in February. Mirroring the global Zodia division, the Japanese offshoot exclusively targets institutional investors. SBI’s crypto subsidiary owns the majority of the joint venture, SBI Digital Asset Holdings, which holds a 51% stake, while Zodia Custody possesses the remaining 49%.
In 2020, Standard Chartered, one of the UK’s leading banks, initially revealed plans to provide institutional custody services for crypto, including Bitcoin. Since its launch in 2021, Zodia has managed to withstand the challenges of the 2022 crypto bear market and major industry setbacks, such as the collapses of FTX and Celsius.
The latest fundraise for Standard Chartered’s Zodia exemplifies the growing interest and confidence in the digital asset sector among global banks. With the backing of financial powerhouses like SBI Holdings, Zodia Custody could support a wider range of cryptocurrencies and venture into new markets. This will further cement its presence in the rapidly evolving and competitive crypto industry, offering innovative solutions for the digital asset landscape.
Standard Chartered Bank Predicts Bitcoin at $100K by 2024 End
Standard Chartered Bank has announced the conclusion of the “crypto winter,” predicting that Bitcoin’s value could skyrocket to $100,000 per coin by the close of 2024. The global banking institution cites a combination of factors, including recent disruptions in the banking industry, as the driving force behind the cryptocurrency’s surging price.
Bitcoin could hit $100,000 by end-2024, Standard Chartered says
"LONDON, April 24 (Reuters) – Top cryptocurrency bitcoin could reach $100,000 by the end of 2024, Standard Chartered (STAN.L) said on Monday, saying that the so-called "crypto winter" is over.
Bitcoin could gain…
— J. Koren (@jakekoren) April 26, 2023
Geoff Kendrick, the Head of Digital Assets Research at Standard Chartered, conveyed in a note that several elements could propel Bitcoin forward. These include the turmoil experienced in the banking sector, the stabilization of high-risk assets as the U.S. Federal Reserve concludes its interest rate hikes, and the enhanced profitability of mining cryptocurrencies. Despite remaining uncertainties, Kendrick maintains that the trajectory towards the $100,000 milestone is becoming increasingly evident.
Currently, Bitcoin is trading at $27,464, experiencing a dip from over $30,000 just a week ago. Nonetheless, the cryptocurrency has witnessed a 65% growth year-to-date. A growing number of market participants and financial analysts have been voicing optimism regarding the future of Bitcoin and the broader cryptocurrency market.
Bitcoin’s Potential Growth Supported by Investment Managers and Authors
In March, the CEO of investment management firm Vaneck shared the belief that we are in the early phases of a multi-year cycle for both gold and Bitcoin. Furthermore, a commodity strategist from Bloomberg Intelligence suggested that a supercycle could be emerging for Bitcoin. In February, cryptocurrency investment firm Pantera Capital declared that the next bull market cycle for Bitcoin had already commenced.
Robert Kiyosaki, the best-selling author of “Rich Dad Poor Dad,” also anticipates a continued rise for Bitcoin. He projects the price of the leading cryptocurrency will achieve $500,000 by 2025. These bullish forecasts demonstrate growing confidence in the expansion and stability of the cryptocurrency market, with a particular focus on Bitcoin.
As Bitcoin and other cryptocurrencies continue to gain momentum in mainstream finance, the positive outlook from esteemed institutions like Standard Chartered Bank and influential figures bolsters the market’s credibility. With the crypto winter now behind us, investors and market participants are eagerly anticipating the potential growth awaiting Bitcoin and the wider cryptocurrency landscape.