Julian Sawyer, CEO of Zodia Custody, called Standard Chartered's full acquisition of the firm a "major validation," arguing that traditional banks cannot safely and efficiently build institutional-grade digital asset custody without proper software. The industry is maturing, moving from crypto to stablecoins and tokenization. "If you're going to do that, you need trust. Trust is what banks do," he said in an interview.
Acquisition Timeline and Business Integration
Sawyer confirmed the acquisition is on track to sign by the end of June and close by the end of August. He declined to disclose the purchase price. In 2023, Zodia Custody raised $36 million from SBI Holdings; market estimates put annual revenue at roughly $34.6 million and total funding at around $46 million.
Under the deal, Standard Chartered's existing digital custody operations in Dubai, Luxembourg, and Hong Kong will merge into Zodia Custody and ultimately fold into the bank's brand — meaning Zodia Custody will cease to exist in the medium term. A new entity, Zodia Solutions, will carry forward the software and infrastructure business, backed by existing shareholders including Northern Trust, Emirates NBD, and National Australia Bank. "This is a major validation," Sawyer said. "Every bank in the world is going to do something with digital assets... they are going to need to have some technology to be able to hold those assets."
Digital Asset Custody as a Banking Necessity
Sawyer noted that client interest in their infrastructure software has scaled dramatically. "Every single bank is going to need to know how to hold digital assets," he said. Large institutions are actively looking, while anyone thinking about stablecoins or tokenization must find an answer. "The market is huge." He added that the crypto industry is naturally moving toward banking because of compliance laws like KYC and AML.
Global Regulatory Divergence
On regulation, Sawyer acknowledged that different jurisdictions are moving at different speeds. He recalled when the UK's FCA was ahead of the curve, attracting firms to set up there, but that has shifted. "Each jurisdiction, each government, is moving at a different pace," he said, highlighting "huge progress" in Asia and Singapore, as well as new rules in Hong Kong and Abu Dhabi. He urged regulators and participants to keep evolving. While some worry about Wall Street taking over, Sawyer argued that the industry's shift toward banking is driven by law, not choice.