Zodia Custody, the crypto branch of Standard Chartered bank, is introducing a service called “Zodia Custody Yield.” This service allows its clients to earn rewards on their crypto assets.
They have teamed up with OpenEden to tokenize real-world assets like treasury bills, enabling investors to earn yield while utilizing blockchain advantages.
Zodia Custody’s new yield offering allows institutional investors to benefit from off-chain yield opportunities for their on-chain assets while maintaining the high security standards of Zodia Custody’s platform. This includes the option of staking, where crypto owners lock up their digital assets to secure the blockchain and, in return, earn periodic crypto rewards.
Staking is an attractive way for crypto businesses to earn, but it comes with regulatory challenges for U.S.-based firms. Companies like Kraken and Coinbase have faced legal action from the Securities and Exchange Commission (SEC) for offering similar products to retail customers without providing the necessary risk disclosures.
Growing Interest in Staking Services Among European Firms
European companies are increasingly embracing staking services. Boerse Stuttgart Group, a major German exchange, recently announced a staking service for institutional clients due to the rising interest in staking from institutional investors.
Zodia Custody, in response to institutional demand, is offering a service that provides “low-risk, liquid, and transparent” digital asset products, particularly for stablecoin holders. Stablecoins are blockchain-based tokens backed by traditional currencies like the dollar, making them popular for transferring value and serving as collateral in blockchain and DeFi applications.
Zodia Custody Seeks to Unlock Yield for Stablecoin Investors
Jeremy Ng, co-founder of OpenEden, highlighted the untapped potential of billions of dollars in stablecoins that could be earning returns for investors. OpenEden and Zodia Custody aim to seize this opportunity by offering tokenized financial products that prioritize safety and transparency, particularly for institutional investors.
Julian Sawyer, CEO of Zodia Custody, believes that many aspects of traditional finance can be transitioned to the world of digital assets.
Zodia Custody recently expanded its crypto custody services to Singapore, demonstrating its commitment to serving the global crypto market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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