21Shares Selects Standard Chartered for Digital Asset Custody

Standard Chartered, a prominent financial institution, has been chosen by 21Shares as its digital asset custodian, indicating a potential shift from crypto-native partners. The announcement, made on Monday, highlights Standard Chartered's expansion into the digital asset space, providing custody services for 21Shares' diverse crypto exchange-traded products. Margaret Harwood-Jones, the bank's global head of financing and securities services, emphasized the collaboration as a step towards enhancing their expertise in the rapidly evolving digital asset market.

Previously, 21Shares had partnered with Zodia Custody, a crypto-native custodian co-founded by Standard Chartered in 2020. Zodia operates as a fully owned subsidiary, suggesting the bank's initial reluctance to engage directly with the crypto sector. The future roles of Standard Chartered and Zodia Custody remain uncertain, with possibilities of them operating concurrently.

This development aligns with a broader trend of traditional financial institutions entering the crypto domain, often leveraging their established reputations. Standard Chartered's new digital asset custody service in Luxembourg complements its recent launch of a trading service for institutional cryptocurrency transactions.

Mandy Chiu, 21Shares' global head of product development, recognized this partnership as crucial for advancing institutional-grade infrastructure in digital assets, citing Standard Chartered's trusted status in global finance.

Other major banks are following suit. US Bancorp recently relaunched its digital asset custody services, and Citigroup and Deutsche Bank are exploring similar avenues, reflecting a growing acceptance of cryptocurrencies within traditional finance.