Key Points
- NAB Ventures has acquired a stake in Zodia Custody, a crypto custodian backed by major financial companies.
- Zodia Custody is preparing to become the custodian of choice for crypto exchange-traded funds (ETFs) on the Australian Securities Exchange (ASX).
NAB Ventures has reportedly invested in Zodia Custody, a crypto custodian firm. The specific details of the stake acquired remain undisclosed. Zodia Custody already has the backing of prominent financial firms such as Standard Chartered Bank, Northern Trust, and SBI Holdings.
This strategic investment makes NAB Ventures the fourth major partner of Zodia Custody. The crypto custody firm established its presence in Australia in late 2023 and now, with the investment firm as its Australian partner, is set to experience further growth.
Driving Factors Behind the Investment
NAB’s decision to invest in Zodia Custody was influenced by several factors, including the company’s innovative approach, institution-grade security, and robust regulatory compliance. Zodia Custody is planning to expand its operations in Australia and has stated that its immediate priorities include collaborating with local exchanges to protect their assets.
Zodia has been chosen by multiple digital asset trading platforms in Australia to serve as their custodian. This is in anticipation of upcoming regulations that will require exchanges to be licensed under the Australian Securities and Investments Commission (ASIC). These regulations, set to be implemented next year, will cover both custody and licensing rules that companies must adhere to avoid legal consequences.
Upcoming Regulatory Changes
Julian Sawyer, CEO of Zodia, has said that the impending regulations in Australia could significantly alter the country’s crypto economy. He believes these new laws will greatly impact how the industry operates once they are implemented in 2025.
Sawyer also mentioned the regulatory changes in Hong Kong and Japan, highlighting how their new crypto regulations have transformed the perception and utilization of cryptocurrencies in these regions. He expects that Australia’s new laws will likely include the “segregation of digital assets and requirements to hold them in cold storage.”
Striving to be the Preferred Custodian
In addition to offering custody services to local exchanges, Zodia Custody is also preparing itself to become the preferred custodian for those awaiting the listing of their crypto exchange-traded funds (ETFs) on the Australian Securities Exchange (ASX).
Following the examples set by the United States and Hong Kong, Australia’s financial regulator has approved the trading of spot Bitcoin ETFs in the country. This allows investors to participate in the emerging economy.
On June 4, the country’s asset manager Monochrome began trading the first spot Bitcoin ETFs that directly track the price of the crypto asset on Cboe Australia.
