Zodia Custody, backed by Standard Chartered, has ended its joint venture with SBI Holdings in Japan after two years, labeling the dissolution as a strategic realignment. The venture, SBI Zodia Custody, was a partnership where SBI held a 51% stake and Zodia Custody a 49% stake, aimed at establishing institutional-grade custodial services in the digital asset sector. Julian Sawyer, CEO of Zodia Custody, indicated that the decision to dissolve was mutual, highlighting shifting priorities for both entities. Although discussions with Japan’s Financial Services Agency were ongoing regarding local registration, no formal application was submitted before the decision to exit was made. SBI Holdings’ spokesperson clarified that dissolving the venture should not be interpreted as a retreat from the market. Despite the exit, Zodia Custody is pursuing expansion in more favorable jurisdictions, including establishing a partnership in the UAE, while regulatory hurdles in Japan continue to present challenges for foreign crypto firms.

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