Zodia Custody enters Luxembourg

Luxembourg — 03 December 2024 — Zodia Custody, a leading institution-first digital asset custodian backed by Standard Chartered, SBI Holdings, Northern Trust and National Australia Bank, has established a new presence in Luxembourg as it capitalises on increased institutional investor interest in digital assets across mainland Europe ahead of key regulations coming into force.

The Luxembourg entity is launched ahead of the full implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCAR), enabling the custodian to better serve institutions and digital asset partners across Europe. Working jointly with the digital asset custodian’s European presence in Ireland and the global UK headquarters, the new Luxembourg entity becomes the seventh overall territory for Zodia Custody, following previous market entries in Australia, Singapore, Hong Kong and Japan.

“Luxembourg is home to a thriving digital asset ecosystem that punches far above its weight, globally,” said Paul de Ruiter, Chief Compliance Officer—Europe, at Zodia Custody. “As digital assets move from an alternative asset class and into the mainstream, we will be at the very centre of the region’s blockchain innovation ecosystem, ensuring every institution in Luxembourg and across Europe can access best-in-class, secure and compliant solutions that maximise the opportunities digital assets offer.”

Zodia Custody’s entry into Luxembourg comes at a pivotal moment for the European institutional digital asset market. The upcoming full implementation of the MiCAR framework is expected to have a transformational impact by creating a robust foundation for the future development of the ecosystem—and potentially provide a framework for regulators around the world. At the same time, Luxembourg is adopting a forward-thinking approach; putting forward proposals to make the regime more flexible and efficient. Combined, the custodian believes this will create a positive business environment that will see the digital asset industry thrive both locally and across Europe in the long term.

“Luxembourg is one of the leading investment fund centres in the world, and the most important private banking centre in the Eurozone. It is also in line to become one of the world’s biggest and most important digital asset hubs,” said Julian Sawyer, CEO, Zodia Custody. “Additionally, the country boasts one of the most forward-thinking approaches to digital asset regulation, creating a positive environment for us to thrive in. Combined with a strong talent pool, the Grand Duchy promises to be a key geography for our own growth—ensuring we can provide institutions on mainland Europe and beyond with access to the best possible solutions and services.”

Zodia Custody is already registered as a Virtual Asset Service Provider by the Commission de Surveillance du Secteur Financier, allowing it to provide virtual asset services for financial institutions in Luxembourg. The custodian is also in the application process for authorisation under the new MiCAR regulatory regime.