Standard Chartered announced that fund manager 21Shares has selected the bank as its digital asset custodian, potentially marking a shift away from a crypto-native partner. This collaboration allows Standard Chartered to extend its expertise into the rapidly evolving digital asset ecosystem.
Margaret Harwood-Jones, the bank's global head of financing and securities services, stated that the partnership represents a significant step forward for both organizations. Standard Chartered will provide crypto custody services to 21Shares, a company that offers a variety of exchange-traded crypto products.
Previously, 21Shares partnered with crypto-native custodian Zodia Custody in late June 2024 to hold its assets. Zodia Custody was co-founded by Standard Chartered in 2020 and operated as a wholly owned subsidiary, indicating the bank's initial intention to avoid direct involvement in cryptocurrency. It remains unclear whether Standard Chartered will replace Zodia Custody or operate alongside it.
This development occurs as more traditional financial institutions begin to roll out cryptocurrency services, often benefiting from reputational advantages over crypto-native competitors.
Expanded Digital Asset Services
Standard Chartered confirmed that 21Shares will utilize its newly established digital asset custody service based in Luxembourg. This announcement follows the bank's mid-July launch of a trading service, which enables institutions and corporations to trade major cryptocurrencies.
Mandy Chiu, 21Shares' global head of product development, described the collaboration as an important milestone in the ongoing mission to bring institutional-grade infrastructure to the digital asset ecosystem. She highlighted the bank's strong reputation in traditional finance as a key advantage.
Chiu emphasized that as one of the world's most trusted financial institutions, Standard Chartered brings extensive expertise in cross-border banking, risk management, and custody. Other major banks have also recently expanded their cryptocurrency offerings.
Industry Trends in Crypto Services
In September, U.S. multinational financial services firm US Bancorp reentered the crypto space by relaunching digital asset custody services specifically for investment managers. Germany's largest bank, Deutsche Bank, was also reported in July to be planning to allow clients to store cryptocurrencies, reflecting a broader trend within the nation.
Reports from mid-August indicated that Wall Street giant Citigroup is considering plans to offer cryptocurrency custody and payment services. This trend has sparked debate within the industry, as crypto-native institutions face increasing competition from traditional finance players.
Martin Hiesboeck, head of blockchain and crypto research at crypto financial services platform Uphold, commented in October that the movement of large Bitcoin wallets into ETFs represents another blow to the original ethos of cryptocurrency. Robbie Mitchnick, BlackRock's head of digital assets, previously stated that the company facilitated over $3 billion worth of actual Bitcoin to ETF conversions, with holders recognizing the convenience of maintaining exposure through existing financial advisor or private bank relationships.