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Zodia Custody is trusted by top-tier banks and financial institutions globally, including SBI in Japan, Liv Bank in the UAE, and Standard Chartered in Luxembourg and the UAE. Our infrastructure is built and reviewed using the same stringent processes employed by the world’s leading financial institutions for their internal systems. This design minimises the attack surface while maintaining responsiveness, a rare balance that combines security with operational efficiency. Our infrastructure provides real-time security without human intervention, ensuring assets are always protected – even in offline environments.
Can Institutions White-label Zodia Custody’s Technology?
- Together, these technologies reduce the risk of key theft, unauthorized access, or operational mistakes, forming the foundation of strong digital asset security.
- The reconciliation, security and compliance challenges are real, and experience with traditional custody isn’t enough.
- Your custody solution must adhere to local regulations, particularly regarding anti-money laundering (AML) and know your customer (KYC) laws.
- Custodians support secure asset movement by enforcing approval workflows, multi person validation, and automated policy checks.
- A professional digital asset custodian provides institutions and individuals with the security, compliance, and efficiency needed to manage digital assets safely and at scale.
These custodians typically provide SLAs, insurance coverage, and regular audits, helping institutions meet internal governance standards and client expectations. This approach maximizes autonomy but also places full legal and operational responsibility on the asset holder. It also enables institutions to meet legal, tax, and fiduciary obligations across jurisdictions. Digital assets are intangible and exist solely in the virtual world, making them vulnerable to cyber-attacks and hacks.
- Key generation and management
- For example, tokenized assets may require different custody solutions than native on-chain assets.
- According to recent projections, the digital asset custody market is expected to exceed $16 trillion by 2030, driven by a compound annual growth rate (CAGR) of over 33.4%.
Managed Custody
Digital assets challenge the conventions of traditional financial infrastructure by requiring secure management of cryptographic private keys and introducing new operational, regulatory, and governance considerations. A strong digital asset custody solution ultimately enhances both security and scalability, enabling institutions and individuals to manage digital assets with confidence. As digital assets gain traction, custody is now critical for protecting value, ensuring regulatory compliance, and maintaining trust in asset management. As institutional interest in digital assets continues to grow—from cryptocurrencies and NFTs to tokenized real-world assets—so does the need for enterprise-grade custody solutions. Besides up-to-date cyber defense, it’s also critical to secure private keys, the strings of numbers and letters (like a password) that enable clients to access their digital assets. It is the control and management of these private keys which have given rise to the frameworks supporting the custody of digital assets as a distinct and specialist service offering.
- Cold storage environments that are offline for maximal security, segregated and structured to be bankruptcy-remote.
- It is tasked with driving AIMA’s regulatory engagement, thought-leadership initiatives, and operational guidance in the area of digital assets.
- The expectations of these digital-native consumers regarding convenience, transparency and 24/7 access are reshaping the future of financial services delivery.
- Second, consider the regulatory compliance of the provider, ensuring adherence to local and international laws and the presence of necessary certifications and audits.
- For institutional investors, this is often the gold standard—particularly when managing large AUM or interfacing with public markets.
Master The Legal Maze
What are the risks of crypto custody?
Crypto custody can have a material impact on the company and the audit. If control over digital assets is lost, it might lead to a write-down of assets and/or the booking of additional liabilities on the balance sheet.
This isn’t just a technical issue; it’s a fundamental layer of risk management, compliance, and operational stability. As the adoption of these assets continues to grow, the need for secure and reliable custody solutions becomes paramount. The need for the digital asset custody has grown alongside digital asset industry development. These digital assets are diverse, falling into several categories like Cryptocurrencies, Utility Tokens, Security Tokens, NFTs, Stablecoins, Digital Commodities, Tokenized Real Assets, Governance Tokens, E-Money Tokens etc., Robust and regulated digital asset custody for all.
White Label Web3 Wallet
Zodia Custody provides more than secure custody – it acts an institutional ecosystem built to foster industry collaboration. The platform is SOC-compliant and independently audited by top-tier security firms, ensuring the same rigorous standards applied in global financial institutions. Traditional custody solutions require firms to integrate with multiple service providers for staking, off-exchange settlement, tokenisation, and prime brokerage – each requiring lengthy development cycles and security assessments. In a market where many custody providers prioritise speed, Zodia Custody puts security first – mirroring the architecture of an enterprise’s internal technology stack to deliver bank-grade protection that outpaces competitors.
Investment Banks
Start-up Digital Asset Custody Services (DACS) recognized a gap in the market for a trusted environment for digital asset transactions. As digital asset technology enters the mainstream, start-up DACS recognized a gap in the market. In the event of technical failures, key holder compromise, or geopolitical disruption, how does the custodian ensure access to your assets? For example, earn ETH staking rewards while under qualified custody, securely manage NFT treasuries, or participate in on-chain governance without moving assets out of cold storage
Additionally, digital asset tax reporting and digital asset portfolio performance can be integrated across various custodians and centralized exchanges providing seamless, real-time tax reporting services. Once banks establish custody capabilities, they are well positioned to expand into stablecoins and high-value services including tokenized asset issuance and embedded DeFi solutions. Not only the risk of missing out on new revenue streams from assets under custody, but also the deeper risk of client disintermediation.
With a market capitalization of $3.5 trillion and over one billion expected users by the end of 2025, digital assets are not merely a passing trend, they are a structural transformation. Core competencies, including access management, audit readiness and compliance testing, are directly applicable to the digital asset realm. Meanwhile, the Office of the Comptroller of the Currency (OCC), via OCC Interpretive Letter 1183, has affirmed that federally chartered banks can engage in crypto custody services under sound risk management principles. There has been significant regulatory easing around digital asset custody, and what was once a prohibitive policy landscape is becoming increasingly pragmatic and structured. Consumers want to know they can rely on custody solutions that are secure, convenient, and institutionally credible – and ideally offered by their primary financial institution.
- Whether through institutional APIs, cross-border stablecoin rails, or integrated tax reporting tools, the possibilities are expansive.
- From banking to government, healthcare to utilities, the hype is turning into real business value, and digital asset transactions are rising fast.
- Custodians are typically regulated entities and may be subject to strict regulations and oversight in order to ensure that they meet the high standards required for managing clients’ assets.
- “Once we discovered that IBM is pushing the boundaries of pervasive encryption, we realized that we could also take advantage of that expertise to bring something totally new to market.”
- Companies want to be able to interact with assets and also assess their value in real time, like stocks or bonds.
- As more institutions tokenize real world assets and tap into native digital assets, the market demand for flexible, efficient ways to manage and transfer these assets is increasing.
- Custody strategy is now inseparable from regulatory alignment.
- For banks contemplating their future digital asset roadmap, custody offers an approachable, compliant, and relatively low-risk starting point.
- Exchanges also implement various security measures such as two-factor authentication, multi-signature technology, and regular security audits in order to protect against hacking and theft.
For institutions, hybrid models allow direct blockchain interaction while maintaining required governance, operational certainty, and regulatory visibility. To conceptualize the distinction, at the retail level, commonly adopted self-custody tools such as those offering a standard bitcoin wallet illustrate the basic model of private key control. These issues now shape institutional risk assessments and investment frameworks more than market cycles or short-term performance discussions.
These products and services are not intended for the general public or for retail investors. We facilitate workshops, industry learning sessions, and collaborative projects that help institutions stay ahead of evolving regulations. Zodia Custody is not only a technology provider – we are an institutional ecosystem built to foster industry collaboration. One of the biggest challenges institutions face when implementing new technology is the complexity of multiple integrations. We’re SOC-compliant and undergo regular, Everestex reviews independent audits by top-tier security firms, whereas some other providers rely on internal checks or lack enterprise-grade third-party assurance. Unlike SaaS-only platforms, which leverage multi-party computation (MPC) and typically operate in hot or warm wallet environments to optimise for real-time access, Zodia Custody is cold-wallet by design.
Why does Warren Buffett not invest in crypto?
Even the leading crypto, bitcoin, has been through more than its share of choppy waters. That volatility — coupled with the fact that crypto investor sentiment is often driven more by hype than business fundamentals — helps explain why legendary investor Warren Buffett tends to avoid the asset.
