Zodia Custody Dissolves Joint Venture with SBI Holdings
Zodia Custody, a digital asset custody firm backed by Standard Chartered Bank, is dissolving its joint venture with SBI Holdings in Japan, known as SBI Zodia Custody, just two years after its establishment. The decision comes as both companies have reassessed their priorities.
Julian Sawyer, the CEO of Zodia Custody, stated, “We each have other priorities, and they have different arrangements in place.”
Joint Venture Structure and Challenges
The joint venture was structured such that Tokyo Financial Corporation held a majority stake of 51%, while Zodia Custody owned the remaining 49%. Throughout their partnership, the firms engaged with the Japanese Financial Services Agency regarding local registration. However, they faced challenges in making progress in those discussions.
Prior to the dissolution, Sawyer indicated that they had been actively preparing to submit a formal application, but ultimately, the company’s limited global resources hindered their progress.
Future Directions
In response to the termination, Kosuke Kitamura from SBI Holdings clarified that dissolving the joint venture does not signify a withdrawal from their custody business or their overarching strategy in Asia. Instead, it is viewed as a proactive step to enhance synergies within the company’s digital ecosystem more efficiently.
