In a strategic move aimed at bolstering cryptocurrency adoption in the Asia-Pacific region, Zodia Custody, backed by financial heavyweights Standard Chartered (OTC: SCBFF), Northern Trust (NASDAQ: NTRS), and SBI Holdings, is set to roll out its robust cryptocurrency storage solutions in Hong Kong. This expansion is a crucial element of Zodia’s overarching strategy, which encompasses Japan, Singapore, and Australia.
Julian Sawyer, the CEO of Zodia, emphasized that institutional clients are the driving force behind the burgeoning demand in Hong Kong. Local authorities in Hong Kong recognize digital assets as integral to the future and are dedicated to positioning the city as a thriving hub in this rapidly growing industry. This progressive approach to digital assets persists despite China’s ban on bitcoin trading and mining.
The Hong Kong Securities and Futures Commission (SFC) recently introduced a regulatory framework for digital assets. These guidelines stipulate that exchanges must operate within a regulated framework. Currently, only two firms, OSL Digital and Hash Blockchain, have managed to secure licenses from the SFC, allowing them to offer their services in Hong Kong.
Zodia is presently in discussions with the SFC and the Hong Kong Monetary Authority in pursuit of regulatory approval. Once obtained, Zodia will initially cater to Hong Kong clients, offering a curated selection of cryptocurrency assets.
This newly established regulatory framework has garnered significant attention from prominent players in the cryptocurrency industry. Industry leaders such as Binance-backed HKVAEX and OKX are contemplating the establishment of their institutions in the region. These developments underscore the increasing interest from institutional entities in the digital asset market of the Asia-Pacific region, offering a promising outlook for cryptocurrency adoption in the region’s future.