Zodia Custody, the crypto safety agency owned by British banking big Normal Chartered, is increasing its companies to Hong Kong. Zodia Custody’s foray into Hong Kong marks its newest stride into the Asia-Pacific area after announcing plans to expand into Singapore final month.
Established in 2020, Zodia Custody focuses on offering strong crypto storage options to monetary establishments, making certain the security and safety of their digital belongings.
Institutional Demand for Crypto in Hong Kong
The CEO of Zodia, Julian Sawyer, told CNBC that Hong Kong presents a singular panorama the place the demand for cryptocurrency companies is predominantly pushed by institutional gamers reasonably than retail prospects.
Julian Sawyer emphasised Hong Kong’s progressive stance towards digital belongings, noting that each the Hong Kong authorities and regulators view digital belongings as the longer term and are eager on positioning Hong Kong as a thriving hub on this burgeoning trade.
Zodia’s growth into Hong Kong is a part of a broader technique to determine a robust presence throughout the Asia-Pacific area.
In current months, the corporate has already prolonged its companies to Japan, Singapore, and Australia, establishing itself as a major participant within the institutional crypto custody area.
Zodia Custody will not be solely underneath the banner of Normal Chartered; it shares possession with famend establishments akin to Northern Belief and Japan’s SBI Holdings.
For Zodia, Hong Kong is the ultimate vacation spot in its Asia-Pacific journey, as the corporate goals to satisfy the calls for of shoppers in all 4 markets.
Julian Sawyer affirmed that there’s a rising curiosity from shoppers each inside and out of doors these jurisdictions who need to have interaction on the institutional facet of cryptocurrency.
Hong Kong Strives to be Crypto Hub With New Laws
Hong Kong’s embrace of crypto belongings is noteworthy, notably in gentle of China’s strict anti-crypto insurance policies, together with the ban on bitcoin buying and selling and mining in 2021.
The Hong Kong Securities and Futures Commission (SFC) has taken proactive steps by introducing a regulatory framework for digital belongings earlier this 12 months.
This framework permits firms to use for registration and provide their crypto companies in a regulated method. At the moment, solely two corporations, OSL Digital and Hash Blockchain, have acquired licenses from the SFC.
Zodia’s growth into the Hong Kong market might be phased, initially offering companies for Hong Kong shoppers with a restricted set of crypto belongings.
The corporate is in dialogue with each the SFC and the Hong Kong Financial Authority to discover the opportunity of regulatory approval inside the monetary district.