Global asset servicer Northern Trust has sought to capitalise on the growing demand for crypto currency services by launching a digital custody service aimed at institutional investors.
Northern Trust has partnered with SC Ventures, the innovation arm of Standard Chartered Bank, to launch the new offering, Zodia Custody, which is expected to begin operations in London in 2021 subject to regulatory approval.
Initially it will provide custody services for the most commonly traded crypto currencies – Bitcoin and Ethereum, followed by XRP, Litecoin and Bitcoin Cash – which collectively account for around 80% of the total assets traded on the major crypto exchanges.
While crypto currencies currently represent just 0.3% of the world’s currency and bank deposits, they are forecast to grow at a compound annual growth rate of 32% over the next five years.
And while institutional investors’ interest in the digital asset class is increasing, they only account for 9% of cryptocurrency investment at present.
One of the impediments to wider involvement has been the absence of fully regulated service providers, including custodians as well as trading exchanges.
Just last month digital asset security vendor Curv announced a partnership with Germany’s Solaris Digital Assets to develop a crypto custody service which is also expected to launch next year.
Zodia Custody will be headed by SC Ventures’ Maxime De Guillebon.
© 2020 funds europe
