Singapore – Standard Chartered CEO Bill Winters has confirmed its partnership with the asset servicer Northern Trust. StanChart’s goal is to capitalize on the growing demand for cryptocurrency services by developing a digital crypto custody service that focuses on institutional investors.
According to the recent report, SC Ventures has partnered with Northern Trust to launch Zodia Custody, which might begin London’s operation next year. It is currently subject to regulatory approval, but once this project launches.
The platform will provide reliable crypto custody services for the most commonly traded cryptocurrencies, such as Ethereum, XRP, Bitcoin, Bitcoin Cash, and Litecoin. Many crypto critics say that it will collectively account for around 80% of the total asset traded on digital currencies.
Although cryptocurrencies are still building momentum and only represent 0.3% of the world’s currency and bank deposits, crypto enthusiasts are confident that crypto assets will continue to grow at a compound annual growth rate of over 32% in the next five years.
Currently, institutional investors’ interest in the digital currency market is only 9% of the cryptocurrency investment. However, it is continuously increasing and includes wider involvement since 2020.
Through its innovation unit SC Ventures, the British Lender Standard Charted will surely tap into the growing demand for cryptocurrencies. The partnership agreed that they would provide an institutional-grade custody solution for digital assets worldwide. Once approved, StanChart and Northern Trust will initially offer services, such as money settlements and transactions for digital currencies.
Currently, a growing number of a global financial institution is expressing optimism towards the blockchain-based currencies. A recent report confirmed that DBS is also considering an entrance into the market through its crypto exchange’s launch in Singapore.
Different governments worldwide have begun experimenting with digital currencies, which allows for more convenience and seamless money transfers. Asian countries believe that cryptocurrencies have a whole new world waiting for the public.