Standard Chartered announced on Monday, May 18, 2026, that it is restructuring its digital asset presence by acquiring the regulated custody business of Zodia Custody and launching a separate infrastructure platform. Under the new arrangement, the bank will integrate Zodia’s regulated custody operations directly into its Financing and Securities Services division, while a new entity, Zodia Solutions, will operate under the SC Ventures innovation unit. The strategic pivot aims to centralize the bank’s digital asset management while providing a specialized platform for institutional infrastructure led by Zodia Custody’s current CEO, Julian Sawyer.
The move represents a significant shift for the venture, which was co-founded in 2020 by Standard Chartered and Northern Trust. Shareholders and noteholders, including SBI Holdings, National Australia Bank (NAB), and Emirates NBD, have reportedly accepted a non-binding offer from Standard Chartered to facilitate the split. By absorbing the regulated arm, the bank intends to streamline its global digital asset portfolio and serve as a more direct bridge between traditional finance and decentralized ecosystems.
This restructuring comes as major financial institutions race to secure a foothold in the custody of digital assets. While institutional pullback remains a risk during periods of high volatility, Standard Chartered appears to be doubling down on long-term infrastructure. The bank is currently eyeing the United Kingdom and Australia as priority expansion targets for its newly integrated crypto custody services, building on its existing operational footprint in the UAE.
Standard Chartered absorbs Zodia Custody’s regulated business
By bringing Zodia Custody’s regulated operations in-house, Standard Chartered is positioning itself to offer a more seamless experience for clients navigating the digital asset space. Margaret Harwood-Jones, the Global Head of Financing and Securities Services at Standard Chartered, will oversee the integration. This move follows the bank’s 2025 launch of a Luxembourg entity designed to provide crypto services across the European Union under the Markets in Crypto-Assets (MiCA) regulation.
The acquisition allows the bank to unlock revenue and cost synergies that were previously dispersed across the joint venture. Zodia Custody, which employs approximately 150 people and raised $18.5 million in Series A funding, currently holds registrations with the Financial Conduct Authority (FCA) in London, Hong Kong’s Companies Registry, and the Luxembourg CSSF. These regulatory approvals are central to the bank’s plan to provide a trusted environment for digital asset storage.
The consolidation also reflects a shift in how banks view the utility of digital assets as the market matures beyond mere speculation. By owning the underlying custody layer, Standard Chartered can ensure compliance and security standards that meet the rigorous demands of institutional investors who are increasingly active in the space.
Zodia Solutions emerges as an institutional infrastructure play
While the regulated custody settles within the bank’s main structure, Zodia Solutions will operate as a standalone platform under SC Ventures. This new entity is designed to serve financial institutions that want to launch or expand their own digital asset suites. Julian Sawyer, who transitions from his role as CEO of Zodia Custody to lead Zodia Solutions, will focus on providing the technical “plumbing” necessary for other firms to enter the crypto market.
Zodia Solutions will be backed by several bank investors, maintaining the collaborative spirit of the original Zodia venture. This separate entity allows SC Ventures to remain agile, developing new tools for the digital asset market without the slower pace often associated with a global bank’s core operations. For more information on the bank’s investment arm, you can visit the official SC Ventures website.
Standard Chartered is reportedly considering a full buyout of minority shareholders in the custody arm, including Northern Trust and SBI Holdings. This would give the bank total control over its custody destiny. The announcement follows a busy year for Zodia, which in January 2026 became the first custodian to support the AUDM stablecoin and launched its “Zodia Switch” feature in February.
Expanding the Zodia ecosystem beyond custody
The split does not affect Zodia Markets, the separate digital asset trading arm founded in 2021. Managed by co-founder Usman Ahmad and COO Nick Philpott, Zodia Markets continues to operate independently. That entity recently raised $18.25 million in Series A funding and supports a wide range of assets, including more than 20 fiat currencies and 70 digital assets.
Standard Chartered’s decision to bifurcate Zodia suggests that custody and infrastructure are now viewed as two distinct business models. As regulators ready more oversight for the crypto market, having a clean, bank-integrated custody solution may prove to be a competitive advantage over third-party providers. The completion of the deal remains subject to standard regulatory approvals and closing conditions.
Future outlook for bank-led crypto services
The restructuring highlights a broader trend of “internalization” among global banks. Instead of relying on external partnerships, institutions like Standard Chartered are opting to own the entire stack of crypto services. This provides better oversight, as required by entities like the Financial Conduct Authority, and allows for tighter integration with existing traditional finance products.
Looking ahead, the success of Zodia Solutions will depend on its ability to sign on other tier-one banks and financial institutions as clients. Meanwhile, the integrated Zodia Custody will need to prove that a traditional bank can manage the rapid technological changes inherent in the crypto world. With the digital asset custody market value continuing to climb, the stakes for this reorganization are high.