July 21, 2024
Standard Chartered's Zodia Custody Launches Yield Service for Institutional Clients
Latest Cryptocurrency News

Standard Chartered’s Zodia Custody Launches Yield Service for Institutional Clients

The cryptocurrency-focused division of the British multinational bank Standard Chartered, Zodia Custody, intends to allow its clients to earn income on their holdings.

The “Zodia Custody Yield” service, which tokenizes real-world assets like Treasury bills and allows investors to receive income while utilizing the advantages of blockchain, was developed by the cryptocurrency custodian in collaboration with OpenEden.

Using the yield offering, institutional investors can “access off-chain yield potential for their on-chain assets without compromising the bank-grade security of Zodia Custody’s platform,” according to a news statement from the company. This includes staking, in which cryptocurrency owners lock up their digital assets to safeguard the blockchain in exchange for recurring cryptocurrency payouts.

Staking offers crypto businesses a lucrative earning opportunity, but it also puts American-based enterprises in legal limbo. The Securities and Exchange Commission (SEC) has previously filed lawsuits against businesses like Kraken and Coinbase for marketing comparable products to retail users without making the necessary risk disclosures.

But European businesses are joining in. A similar staking service for institutional clients was unveiled earlier this month by the big German exchange Boerse Stuttgart Group, which cited “increasing interest from institutional investors in the staking sector.”

A similar statement was made by Zodia, which claimed that its service meets institutions’ needs for “low-risk, liquid, and transparent” digital asset products “concerning how returns are generated for stablecoin holders.”

In the blockchain and DeFi ecosystems, stablecoins—blockchain-based tokens supported by fiat currencies like dollars—are a common method of value transfer and lending collateral.

“There are billions of dollars worth of stablecoins sitting on the sidelines when they could easily be generating yields for investors,” stated Jeremy Ng, co-founder of OpenEden, in a statement. “That’s a huge opportunity, and one that we and Zodia Custody hope to bring to institutions.”

Ng stated that this will be accomplished by the company “through tokenized financial products in a way that is both safe and transparent.”

CEO of Zodia Custody, Julian Sawyer, noted that “a lot in the world of traditional finance can be moved to digital assets.” Just a few days ago, Zodia announced the introduction of its cryptocurrency custody services in Singapore.

Image: Flickr

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Opyn Co-Founders Exit Crypto After Settlement: New Leadership Takes Helm

Kevin Wilson

Solana Surges, Flips Binance’s BNB

Bran Lopez

Coinbase Unveils International Spot Crypto Trading For Institutions

Eva Moore

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.