Zodia Custody, a digital asset custody firm linked to Standard Chartered, has announced the dissolution of its joint venture with SBI Holdings.
End of the Joint Venture
The venture, known as SBI Zodia Custody, was established two years ago, with SBI holding 51% and Zodia Custody 49%. The main aim of the project was to provide institutional-grade custodial services in the digital asset space.
Comments from Both Parties
According to Julian Sawyer, CEO of Zodia Custody, the decision to dissolve was mutual, as both companies chose to focus on other priorities. He also noted that discussions regarding registration with Japan’s Financial Services Agency (FSA) took place, but no formal application was submitted.
Challenges in the Japanese Crypto Market
Japan remains a tough market for foreign crypto firms due to its cautious regulatory approach. Many startups face challenges due to slow and restrictive approval practices. Kosuke Kitamura, a spokesperson for SBI Holdings, described the exit from the partnership as a proactive decision aimed at achieving synergies within the broader digital ecosystem.
The dissolution of the joint venture between Zodia Custody and SBI Holdings highlights the current challenges facing companies in the Japanese digital asset market and the need to adapt to changing conditions.
