Standard Chartered has announced that it will act as the digital asset custodian for 21Shares, in a move that signifies a deeper integration of traditional finance (TradFi) into the cryptocurrency market. This development raises questions regarding the future of Zodia Custody.

On a recent Monday, Standard Chartered shared details with Cointelegraph about this collaboration that enables them to leverage their expertise within the evolving digital asset landscape.

Initially, 21Shares had partnered with Zodia Custody in late June 2024. Zodia, which was co-founded by Standard Chartered in 2020, had been a significant player, indicating the bank’s earlier caution in engaging directly with crypto.

Whether Standard Chartered will assume Zodia’s responsibilities or if both will continue to operate concurrently remains unknown.

As traditional financial institutions increasingly venture into cryptocurrency arenas, they often gain a reputation boost over crypto-native competitors. By partnering with 21Shares, Standard Chartered aims to showcase its credibility and experience in managing assets across borders, risk assessment, and custodianship. According to Mandy Chiu, the global head of product development at 21Shares, this alliance is a crucial step towards reinforcing institutional-grade infrastructures in the digital asset space.

• “As one of the world’s most trusted financial institutions, Standard Chartered brings deep expertise in cross-border banking, risk management, and custody.”

Other banks are beginning to take similar actions, such as US Bancorp’s renewed focus on digital asset custody services and Citigroup’s contemplation of custody and payment services within the crypto space, indicating a broader trend among major financial players.

The competitive landscape is shifting as crypto-native institutions adapt to compete with the growing presence of traditional finance in the crypto market.