Zodia Custody, a company focused on providing crypto custody solutions is partnering with 21Shares, a Switzerland-based crypto investment product firm to offer custody services for physically backed crypto exchange-traded products (ETPs) across the broader European market. According to the announcement, this collaboration will address the institutional demand for secure and reliable crypto ETPs in Europe.
Significance of the Partnership
The new partnership will enable Zodia Custody and 21Shares to leverage their expertise in safeguarding cryptocurrencies to support 21Shares’ range of crypto ETPs. The European market has seen a significant rise in interest from institutional investors seeking to diversify their portfolios with crypto assets.
This increasing demand underscores the need for a secure and robust infrastructure to manage these digital assets. Organizations using 21Shares for ETP investments will have 24/7 access to cold-storage wallets.
Meanwhile, the collaboration between Zodia Custody and 21Shares will enable institutions to invest in crypto ETPs without fear. Zodia Custody’s advanced security measures, including comprehensive insurance coverage and compliance with regulatory standards, ensure that clients’ assets are well-protected.
Zodia Custody Partners With Metaco for Sub-custody Solutions
In December 2023, the crypto firm co-owned by British banking giant Standard Chartered unveiled a strategic collaboration with Metaco, a crypto custody firm acquired by Ripple. This partnership is geared towards offering global sub-custody solutions, catering to the escalating demands for the self-custody of digital assets.
Interestingly, this advanced system allows customers to store their investments safely from various locations. Undoubtedly, the demand for secure and versatile custody solutions has surged following the maturity of the cryptocurrency industry. As such, the partnership will meet this demand by providing a cutting-edge sub-custody system that enhances security and regulatory compliance.
WisdomTree Launches Crypto ETPs
Notably, Zodia Custody is not the only one driving institutional interest in cryptocurrencies. WisdomTree, a New York-based management firm, has secured approval from the Financial Conduct Authority (FCA) to launch physically-backed Bitcoin (BTC) and Ethereum (ETH) ETPs on the London Stock Exchange (LSE).
As per the announcement, this milestone positions WisdomTree among the first issuers to receive FCA approval for a prospectus dedicated to cryptocurrency ETPs. The ETPs are available exclusively to professional investors, reflecting a cautious approach to introducing digital asset products.
Meanwhile, the FCA’s approval signals a readiness among regulators to accommodate and oversee the integration of digital assets into mainstream finance. WisdomTree’s crypto ETPs are currently listed on the Swiss Stock Exchange SIX, Deutsche Borse Xetra, and Euronext exchanges in Paris and Amsterdam. However, its European crypto ETPs are available for sale in several countries like Austria, Norway, Spain, the United Kingdom, etc.
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