- Zodia Custody joins hands with Ripple’s Metaco, offering global sub-custody services.
- While the crypto economy is grappling with increasing threats, the notion of self-custody is widely accepted.
- Julian Sawyer, the CEO of Zodia Custody, sees sub-custody as the third generation of crypto custody.
Recent reports revealed that Zodia Custody, an FCA-registered digital asset custodian by Standard Chartered, has partnered with Mataco, the crypto custody firm acquired by Ripple. The collaboration envisions offering global sub-custody amidst the growing importance of self-custody of crypto assets.
While economic challenges and inherent threats persist in the crypto economy, the notions of crypto storage and settlement networks have become more popular as a way to limit third-party interference. In light of the FTX fall and the subsequent crypto winter that the community witnessed, investors became more vigilant about the potential risks of cryptocurrencies.
Zodia Custody CEO Julian Sawyer narrated the significance of the platform’s alliance with Metaco. Shedding light on the different systems that came into existence to overpower the traditional financial system that existed in decentralized finance (DeFi), Sawyer stated that the sub-custody system is “the third generation of crypto custody, where multiple custodians are linked together.” Sawyer added,
For example, a client in Brazil, who is a custodian, may want to store some assets in the UK, and they’re not currently in the UK. So they could use us as their sub-custodian and use our regulatory permissions, etc. I think the multiple networks that are out there are really key in terms of linking custodians together, and linking custodians to exchanges and venues in a compliant manner.
The other systems exemplified by Sawyer included the Copper Loom System and the self-custody off-exchange systems. These systems are introduced in the ecosystem to promote the deepest security of cryptocurrencies.
In related news, HSBC Holdings joined hands with Metaco to provide custody services for tokenized securities and other similar assets. Reportedly, HSBC would issue the custody services in 2024, serving as a complement to the bank’s crypto platform, HSBC Orion.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
