National Australia Bank Invests in Crypto Firm Zodia Custody

National Australia Bank’s venture capital arm, NAB Ventures, has invested in Zodia Custody, a move that highlights the growing
acceptance of cryptocurrency solutions in the traditional banking framework.

Zodia Custody’s Australian Expansion

Zodia Custody, a platform known for its
institution-grade cryptocurrency and digital asset storage, established its
operations in Australia in late 2023. According to Coindek, the exact amount of
NAB Ventures’ investment in the entity remains undisclosed.

Following the investment, Zodia Custody is focusing on
onboarding Australia’s unique ecosystem of home-grown digital asset exchanges.
Many of these exchanges are transitioning their assets to the Zodia platform in
anticipation of stricter regulatory requirements expected to be implemented by
2025.

NAB Ventures takes a stake in bank-backed global digital asset custodian Zodia Custody https://t.co/Ou72idgTtw pic.twitter.com/MLCN2FjxSy

— Zodia (@ZodiaCustody) June 19, 2024

Major financial
players such as Standard Chartered, Northern Trust, and SBI Holdings support Zodia Custody. The latest investment from NAB is part of Zodia’s broader strategy to become the custodian of
choice for digital asset ETFs awaiting approval from the Australian Securities
Exchange.

Lately, Zodia Custody has been expanding its global
footprint. In March, the company extended its crypto security services to financial institutions in Hong Kong. Founded in 2020, the UK-based crypto arm of
Standard Chartered mentioned that it aims to meet the institutional demand for
crypto asset storage in the region.

Expanding Services Globally

This move followed the firm’s expansion into
the Asia-Pacific region, including Australia. According to Zodia, financial
institutions in Hong Kong have expressed an increasing interest in crypto
assets, creating an ideal client base for investment. Previously, Zodia
extended its operations to Japan, Singapore, and Australia. Zodia also introduced SAF3, a digital asset custody
platform specifically designed for institutional clients in Australia.

The digital asset
firm is also reportedly considering future partnerships and is open to clients
from jurisdictions outside of its current operational footprint. Besides that, Zodia
Markets, a digital asset exchange and brokerage platform, obtained approval as a virtual asset service provider from the Central Bank of Ireland last
year.

This article was written by Jared Kirui at www.financemagnates.com.
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