Normal Chartered’s Crypto Agency Zodia Launches in Hong Kong

Zodia Custody, the crypto safety agency owned by British banking large Normal Chartered, is increasing its companies to Hong Kong. Zodia Custody’s foray into Hong Kong marks its newest stride into the Asia-Pacific area after announcing plans to expand into Singapore final month.

Established in 2020, Zodia Custody makes a speciality of offering strong crypto storage options to monetary establishments, guaranteeing the protection and safety of their digital belongings.

Institutional Demand for Crypto in Hong Kong

The CEO of Zodia, Julian Sawyer, told CNBC that Hong Kong presents a singular panorama the place the demand for cryptocurrency companies is predominantly pushed by institutional gamers moderately than retail prospects.

Julian Sawyer emphasised Hong Kong’s progressive stance towards digital belongings, noting that each the Hong Kong authorities and regulators view digital belongings as the long run and are eager on positioning Hong Kong as a thriving hub on this burgeoning trade.

Zodia’s enlargement into Hong Kong is a part of a broader technique to determine a robust presence throughout the Asia-Pacific area.

In current months, the corporate has already prolonged its companies to Japan, Singapore, and Australia, establishing itself as a big participant within the institutional crypto custody area.

Zodia Custody shouldn’t be solely beneath the banner of Normal Chartered; it shares possession with famend establishments reminiscent of Northern Belief and Japan’s SBI Holdings.

For Zodia, Hong Kong is the ultimate vacation spot in its Asia-Pacific journey, as the corporate goals to fulfill the calls for of shoppers in all 4 markets.

Julian Sawyer affirmed that there’s a rising curiosity from shoppers each inside and outdoors these jurisdictions who want to have interaction on the institutional facet of cryptocurrency.

Hong Kong Strives to be Crypto Hub With New Laws

Hong Kong’s embrace of crypto belongings is noteworthy, notably in gentle of China’s strict anti-crypto insurance policies, together with the ban on bitcoin buying and selling and mining in 2021.

The Hong Kong Securities and Futures Commission (SFC) has taken proactive steps by introducing a regulatory framework for digital belongings earlier this yr.

This framework permits firms to use for registration and provide their crypto companies in a regulated method. At the moment, solely two companies, OSL Digital and Hash Blockchain, have acquired licenses from the SFC.

Zodia’s enlargement into the Hong Kong market shall be phased, initially offering companies for Hong Kong shoppers with a restricted set of crypto belongings.

The corporate is in dialogue with each the SFC and the Hong Kong Financial Authority to discover the potential for regulatory approval inside the monetary district.