Zodia Custody has secured a payment institution license from Luxembourg's Commission de Surveillance du Secteur Financier, enabling the company to provide regulated custody and transfer services for Electronic Money Tokens, or stablecoins, across the European Union. The approval extends Zodia Custody's institutional digital asset offering as stablecoins gain a larger role in settlement, liquidity, and treasury operations. The license adds to Zodia Custody's existing MiCA license and removes structural barriers and counterparty risks associated with fragmented service providers, according to a statement shared with The Block on Tuesday.
Luxembourg License Enables EU-Wide Stablecoin Custody and Transfer Services
The payment institution license from Luxembourg's Commission de Surveillance du Secteur Financier allows Zodia Custody to custody and transfer Electronic Money Tokens across the European Union. Zodia Custody said the two licenses together—the new payment institution license and the existing MiCA license—remove structural barriers and counterparty risks associated with fragmented service providers. The ability to custody and transfer Electronic Money Tokens will become a baseline requirement for digital asset infrastructure providers, the company stated. The Luxembourg approval adds to regulatory authorizations and permissions held by Zodia Custody in the UK, UAE, Hong Kong, Singapore, and Australia.
Standard Chartered Accepted Non-Binding Takeover Offer on May 18
Launched in 2020, Zodia Custody is an institutional-focused digital asset platform backed by shareholders including Standard Chartered, Northern Trust, SBI Holdings, Emirates NBD, and National Australia Bank. Bloomberg reported in April that Standard Chartered was considering a takeover of Zodia Custody to bring the crypto custodian's operations in-house. On May 18, the bank said its non-binding offer had been accepted, with Zodia's regulated custody activities set to be integrated into Standard Chartered's digital asset custody business.
FAQ
What did Zodia Custody secure from Luxembourg's financial regulator?
Zodia Custody secured a payment institution license from Luxembourg's Commission de Surveillance du Secteur Financier, enabling it to provide regulated custody and transfer services for Electronic Money Tokens, or stablecoins, across the European Union.
When did Standard Chartered's non-binding takeover offer for Zodia Custody get accepted?
Standard Chartered's non-binding takeover offer was accepted on May 18, with Zodia's regulated custody activities set to be integrated into Standard Chartered's digital asset custody business.
Which regulatory authorizations does Zodia Custody hold?
Zodia Custody holds regulatory authorizations and permissions in Luxembourg, the UK, UAE, Hong Kong, Singapore, and Australia, according to the company's statement.
