Standard Chartered's Zodia Custody deliberates over procuring Tungsten within the United Arab Emirates
Zodia Custody, a global digital asset custody provider, has completed the acquisition of Tungsten Custody Solutions in the UAE, marking its official entry into the region and cementing its presence there.
The acquisition has enabled Zodia to gain the Abu Dhabi Global Market (ADGM) license through Tungsten, which is a regulated digital asset custodian in the region. This move aligns with Zodia’s broader strategy to combine traditional financial infrastructure with digital assets, especially focusing on cross-border stablecoin payments and institutional capital flows beyond conventional banking hours.
The strategic impact of this acquisition on Zodia Custody’s global ambitions is significant. It expands Zodia’s footprint into the Middle East market, a rapidly growing hub for digital asset adoption and blockchain innovation. It also positions Zodia Custody as a regulated player in a key international financial center, supporting institutional-grade custody services in a new jurisdiction.
Tungsten Custody holds a license in the Abu Dhabi Global Market (ADGM) and has initial approval from the Dubai regulator VARA. The acquisition would not affect Tungsten Custod's existing licenses in the ADGM and Dubai.
The acquisition of Tungsten Custody would accelerate the regulatory approval process for Zodia Custody in the UAE. Abu Dhabi's Further Ventures, a backer of Tungsten Custod, would become a shareholder in Zodia Custody if the transaction proceeds.
Zodia Custody's expansion into the UAE with the acquisition of Tungsten Custod would increase their presence in regions such as the UK, Ireland, Luxembourg, Hong Kong, Singapore, and their joint venture in Japan.
Julian Sawyer, the CEO of Zodia Custody, stated, "We are excited to be entering the UAE market and partnering with Tungsten Custody. This acquisition is a significant step in our global growth strategy, and we look forward to expanding our services in the region."
Last year, Zodia Custody secured numerous new custody clients, including Deutsche Bank's 21Shares, DWS, Galaxy Digital, and Securitize. The new hires in the UAE by Zodia Custody are likely to support the growth and expansion of their operations in the region.
Zodia Custody was founded by Standard Chartered's SC Ventures, Northern Trust, Japan's SBI, National Australia Bank (NAB), and Emirates NBD. The company has already raised $150 million in funding and is backed by several prominent investors.
In conclusion, Zodia Custody's acquisition of Tungsten Custody is completed with regulatory approvals in place, strengthening Zodia’s global strategy by expanding its regulated digital asset custody capabilities into the UAE and Middle East region.
The acquisition of Tungsten Custody by Zodia Custody has allowed for the integration of technology and finance in the industry, with a focus on fintech and digital assets. This strategic move provides insights into Zodia Custody's growth strategy, aiming to leverage tokenization and identity verification for cross-border stablecoin payments and institutional capital flows. The acquisition not only marks their entry into the UAE but also positions Zodia Custody as a regulated player, offering institutional-grade custody services in a new jurisdiction, contributing to their global ambitions.
