Zodia Custody, an institution-grade cryptocurrency and digital assets safekeeping platform, has received a strategic investment from NAB Ventures, the venture arm of National Australia Bank (NAB). This investment comes on the heels of Zodia establishing its operations in Australia in late 2023.
Backed by Financial Giants
Zodia Custody is already backed by prominent financial institutions, including Standard Chartered, Northern Trust, and SBI Holdings. The infusion of capital from NAB Ventures will bolster Zodia’s presence and operational capabilities in Australia.
Strategic Investment and Vision
The size of NAB Ventures’ investment in Zodia Custody has not been disclosed. However, the rationale behind the investment is clear. Amanda Angelini, Managing Director of NAB Ventures, highlighted the factors influencing their decision:
“NAB Ventures’ investment in Zodia was based on a range of factors including their innovative approach, institution-grade safety and strong work with regulators.”
This investment underscores NAB Ventures’ confidence in Zodia’s potential to provide secure and regulated digital asset custody solutions.
Immediate Priorities
With the investment in place, Zodia Custody has outlined several immediate priorities:
- Onboarding Local Digital Asset Exchanges: Zodia aims to integrate Australia’s unique ecosystem of home-grown digital asset exchanges. These exchanges are expected to migrate their assets to the Zodia Custody platform, anticipating stricter regulatory requirements set to take effect in 2025.
- Preparing for ETF Issuers: Zodia Custody is positioning itself as the custodian of choice for anticipated digital asset ETFs (Exchange-Traded Funds) awaiting approval from the Australian Securities Exchange (ASX).
Embracing Cryptocurrency Custody
Financial institutions globally have shown increasing interest in cryptocurrency custody solutions, usually preferring third-party platforms to manage cryptographic keys. These solutions offer various use cases, including trading and tokenization, underpinned by robust security measures.
Zodia Custody’s entry into the Australian market, supported by NAB Ventures’ investment, represents a significant step towards mainstream adoption and regulatory alignment of digital assets within the region.
NAB Ventures’ investment in Zodia Custody highlights the growing institutional interest in secure and regulated cryptocurrency custody solutions. As Zodia continues to expand its operations and integrate local digital asset exchanges, it is well-positioned to support the evolving landscape of digital assets in Australia. This strategic partnership is set to enhance the infrastructure for digital asset management, paving the way for broader adoption and regulatory compliance.
