Standard Chartered Expands Crypto Services to Europe through Luxembourg Subsidiary
Zodia Custody Ltd, a subsidiary of Standard Chartered that offers custody services for Bitcoin and other cryptocurrencies, has been registered as a virtual asset service provider in Luxembourg, expanding its reach across Europe.
According to John Cronin, the CEO of Zodia Custody Ireland, the company’s Irish subsidiary will also be registered with the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.
Cronin believes relocating to Luxembourg will enable Zodia to attract more customers in the fund management industry, as Luxembourg is a well-established hub.
In preparation for implementing new cryptocurrency regulations that would facilitate the transfer of registers between member states, Zodia’s registration in Luxembourg allows the company to expand its operations throughout the European Union.
Zodia is also pursuing regulatory approval in France and Spain, where they have clients. Cronin states that licenses are being pursued strategically based on client demand.
Unlike the UK and Ireland, where some companies have waited several years for anti-money laundering licenses, Zodia’s registration in Luxembourg took only eight months.
Zodia Custody is entirely owned by Standard Chartered, with a 10% investment from Northern Trust. The foundation for the company was laid in 2020 at the start of the previous cryptocurrency bull market. However, the industry has faced corporate failures, declining values, and controversies.