Standard Chartered-backed firm shifts focus as SBI pursues faster digital expansion
Zodia Custody has ended its joint venture with Japan’s SBI Holdings, marking a strategic realignment for both companies after two years of collaboration. The move highlights the challenges of operating in Japan’s tightly regulated digital asset market while both firms pursue new priorities.
Dissolution made by “mutual decision”
The joint venture, known as SBI Zodia Custody, launched with the goal of bringing institutional-grade custodial services to Japan. Ownership was split between SBI (51%) and Zodia (49%).
Julian Sawyer, CEO of Zodia Custody, described the exit as a coordinated step. “This is a strategic alignment between SBI and ourselves as a mutual decision that we have other priorities and they have other priorities,” he said in comments to Bloomberg.
Sawyer noted that the venture had engaged in discussions with Japan’s Financial Services Agency (FSA) but did not file a formal registration application before deciding to dissolve the project.
SBI emphasizes continued expansion
SBI Holdings stressed that the decision should not be interpreted as a pullback from digital assets. “This dissolution does not represent a retreat,” spokesperson Kosuke Kitamura explained. “It’s a proactive decision aimed at pursuing group-wide synergies with greater speed under our digital ecosystem.”
Reports last month suggested SBI was preparing to launch Japan’s first dual-asset cryptocurrency ETF, offering exposure to Bitcoin and XRP, though the firm later denied those claims.
While leaving Japan, Zodia Custody has expanded elsewhere. The firm recently acquired Tungsten Custody Solutions in the UAE, reflecting a preference for regulatory environments more supportive of institutional digital asset services.
Japan remains a difficult landscape
Experts say Japan’s cautious regulatory stance continues to limit foreign crypto participation. “Japan’s slow, prescriptive, and risk-averse approval culture will keep pushing startups and liquidity offshore,” said Maksym Sakharov, co-founder of WeFi.
The dissolution underscores the balancing act between regulatory compliance and strategic growth in a country still struggling to attract global crypto innovators.
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