Standard Chartered’s subsidiary, Zodia Custody, has recently launched a new service that allows crypto investors to earn passive income from their digital assets. The company has partnered with Singapore-based blockchain technology provider OpenEden to create the Zodia Custody Yield program, which offers staking services to institutional clients.
The objective of this partnership is to cater to the demand for low-risk, liquid, and transparent digital asset products. Zodia has recognized the potential of generating real-world yield from US Treasury bills enabled by OpenEden’s platform. This collaboration also ensures on-chain security and transparency for real-world assets managed by regulated fund managers.
Jeremy Ng, co-founder of OpenEden, explains that the program is primarily designed to provide yield opportunities for holders of stablecoins. Currently, there are billions of dollars worth of stablecoins that are not being utilized to their full potential. By offering these holders the ability to generate yields, Zodia Custody and OpenEden hope to tap into this significant opportunity. Both parties aim to provide a safe and transparent entry point for issuers and investors into the digital asset market through tokenized financial products.
Zodia made this announcement following its recent achievement of becoming the first bank-owned entity to offer digital asset custody services for financial institutions in Singapore. This development showcases the growing interest and recognition of digital assets in the banking sector.
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The Zodia Custody Yield program not only provides investors with a way to earn passive income from their digital assets but also addresses concerns related to security and regulation. By partnering with regulated fund managers, Zodia ensures that institutional clients have access to a reliable and compliant framework.
Interestingly, the partnership between Zodia Custody and OpenEden comes at a time when the demand for digital assets is on the rise. The crypto market has gained mainstream attention, with institutional investors increasingly looking for opportunities to diversify their portfolios and generate higher returns. By offering yield opportunities for stablecoins, Zodia and OpenEden are well-positioned to capture a significant share of this growing market.
In conclusion, the launch of the Zodia Custody Yield program marks a significant development in the crypto industry. It not only provides a new source of income for crypto investors but also demonstrates the broader acceptance and integration of digital assets within the traditional banking sector. With the backing of a well-established institution like Standard Chartered, Zodia Custody is well-positioned to attract institutional clients and drive further adoption of digital assets in the financial industry. As the market continues to evolve, it will be interesting to see how Zodia Custody and OpenEden expand their offerings and cater to the changing needs of investors.
