Institutional Access to Tokenized Assets
Zodia Custody has created a strategic partnership with Securitize to extend institutional access to tokenized assets. By integrating Securitize’s technology, Zodia seeks to deliver an enhanced custody service that ensures the safekeeping and regulatory compliance of tokenized investments. The move underlines Zodia Custody’s commitment to institutional investors trying to make sense of this fast-developing digital asset market.
In fact, one of the main beneficiaries of this deal is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). With tokenization gathering steam in traditional finance, this agreement between Zodia and Securitize aims to leverage that momentum toward further enablement of institutions to take part in tokenized financial products.
Institutional Advanced Custody Solutions
Zodia’s custody services prioritize security and compliance, critical factors for institutional investors. The platform offers robust cold storage solutions, segregating client assets to protect against cyber threats and ensuring adherence to stringent regulatory standards. These features address the primary concerns of institutions managing digital assets, safeguarding their investments in the growing market.
London-based Zodia Custody boasts backers including Standard Chartered, Northern Trust, and SBI Holdings. Its strong support by industry players means Zodia is well-placed to secure a foothold with institutional investors into the world of digital assets.
Tokenization’s Expanding Role in Finance
Tokenization is creating a revolution in financial markets through its digitization of tangible and intangible assets in the form of digital tokens kept on blockchains. This represents the potential for increased efficiency, costs, and access compared to conventional methods in asset management. For example, BlackRock’s BUIDL fund already attracted $530 million in assets under management since its launch in March 2024.
The market for tokenized assets is expected to surpass the cryptocurrency market capitalization and reach more than $4.5 trillion by 2028. Although USD stablecoins are currently dominant in the tokenization landscape, many new financial products are fast emerging that are tied to assets such as real estate and debt, indicative of the growth potential of the sector.
Driving the Future of Tokenized Assets
Zodia CEO Julian Sawyer commented on the transformative potential of tokenized assets:
Above all, this growth in BUIDL evidences the tokenized assets opportunity and its transformational potential both for traditional finance and for digital-native businesses.
This partnership reflects the developing synergy between mainstream financial incumbents and digital-native solutions. As the tokenized asset market keeps up its pace of growth, Zodia and Securitize are working together to position themselves as key enablers of institutional adoption-bridging the gap between legacy finance and blockchain technology.
