Zodia Custody Terminates Japan Venture With SBI Holdings—What’s Next for Crypto Security?

Another crypto custody partnership bites the dust—just as institutional adoption was supposed to be heating up.

Zodia Custody, the institutional-grade digital asset custodian backed by Standard Chartered, has officially pulled the plug on its joint venture with SBI Holdings in Japan. The move comes amid tightening regulatory scrutiny and shifting market dynamics in Asia’s crypto landscape.

Why the split? Rumors suggest diverging strategic priorities—Zodia’s global expansion ambitions clashed with SBI’s domestic focus. Neither side is crying over spilled milk, though. Zodia’s already eyeing greener pastures in Europe and the Middle East, while SBI reaffirms its commitment to Japan’s… cautiously evolving market.

Timing’s everything—and pulling out now reeks of classic finance conservatism. Because nothing says 'confidence' like exiting a joint venture right when the regulatory fog starts lifting. Guess some players would rather wait for a engraved invitation than build the door themselves.

SBI Boosts USDC in Japan, Zodia Eyes New Crypto Ventures

The decision marks a pivot for both companies as they realign their efforts in the rapidly evolving digital asset sector. Zodia continues to explore opportunities elsewhere, while SBI focuses on its broader digital strategy.

Recently, on August 23, SBI Holding has formed a joint venture with Circle, the company behind USDC, to advance the use of USDC and digital finance services in Japan. Further, on April 3, the crypto exchange Bybit had partnered with Zodia Custody to provide secure trading to its institutional investors. 

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