Standard Chartered Secures 21Shares Crypto Custody Deal

Standard Chartered has been named digital asset custodian for 21Shares, replacing Zodia Custody. The move highlights traditional finance's growing role in crypto and raises questions about Zodia's future.

Standard Chartered has been appointed as the digital asset custodian for 21Shares, a major issuer of crypto exchange-traded products (ETPs). This partnership marks a significant move as 21Shares transitions from its previous crypto-native custodian, Zodia Custody, to a traditional bank with a regulated platform in Luxembourg. The collaboration aims to enhance institutional-grade infrastructure, offering secure and compliant custody services under the supervision of the Commission de Surveillance du Secteur Financier (CSSF). The agreement reflects a broader trend of traditional financial institutions deepening their involvement in the crypto sector, responding to growing institutional demand for robust risk management and regulatory compliance. The shift also raises questions about the future role of Zodia Custody, previously launched by Standard Chartered to enter the crypto space without direct asset holding. As 21Shares manages around $8 billion in assets and continues to expand its offerings, the move underscores the convergence of traditional banking and digital assets, with regulated banks increasingly providing custody solutions for crypto investment products.