Banks Will Need Digital Asset Custody as Standard Chartered Moves to Acquire Zodia Custody

The digital asset industry is moving closer to mainstream banking as Standard Chartered prepares to fully acquire Zodia Custody, according to CEO Julian Sawyer. The deal is expected to be signed by the end of June and completed by the end of August.

Sawyer described the acquisition as a major validation of the digital asset sector, arguing that large financial institutions increasingly recognize they need proven infrastructure rather than building everything internally.

Under the agreement, Standard Chartered’s existing digital custody operations in Dubai, Luxembourg and Hong Kong will merge with Zodia Custody. Over time, the Zodia Custody brand will be absorbed into Standard Chartered’s broader business.

Every Bank Will Need Digital Asset Infrastructure

Sawyer said demand for digital asset custody technology is growing rapidly as banks explore tokenization, stablecoins and blockchain-based financial services.

According to him, every bank will eventually need the ability to securely hold and manage digital assets. He believes digital asset custody is becoming as important as traditional financial infrastructure as tokenized assets and stablecoin payments gain adoption.

Global Regulation Continues to Evolve

Sawyer also highlighted growing regulatory progress across major financial centers. He pointed to developments in Singapore, Hong Kong and Abu Dhabi as examples of jurisdictions advancing digital asset regulations.

He noted that the crypto industry is increasingly aligning with traditional banking standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. As regulation becomes more consistent worldwide, banks are becoming more comfortable expanding into digital assets.

The acquisition reflects a broader trend in global finance, where established banks are investing in custody, tokenization and stablecoin infrastructure to prepare for a future where digital assets play a larger role in the financial system.