Zodia Custody, a digital custody platform backed by SC Ventures, is deepening its engagement in Asia Pacific, having recently opened a new office in Sydney and embedded executive leadership in the region as it works with major institutions to put digital asset strategies into practice. Speaking at Hong Kong FinTech Week, Deborah Algeo outlined how the firm helps financial institutions operationalise tokenisation, custody and compliance at scale. Incubated within Ventures Lab by SC Ventures, Zodia Custody was designed to meet the needs of regulated institutions entering digital finance. “That heritage means we understand regulation, compliance and risk in a way few fintechs do,” Algeo said. A significant portion of the team has banking backgrounds, bringing experience in governance, risk and operations. “That’s what differentiates Zodia Custody,” she added. “It’s not just about technology but helping clients launch and scale digital asset businesses.” This expertise also underpins Zodia Custody’s commitment to working closely with regulators and partners across APAC. These include regulatory sandboxes and collaborative projects with Standard Chartered, Animoca Brands and HKT Group in Hong Kong, where initiatives aimed at developing the tokenisation ecosystem pave the way for large-scale institutional adoption. Algeo also described the company’s “offline and online” approach. Offline, Zodia Custody supports education and consultation with regulators. Online, it embeds automated compliance into its platform, enabling institutions to run robust digital-asset operations from day one. “Engaging early and helping shape regulation means we can offer solutions that are compliant as the rules evolve,” she said. Institutional adoption gathers pace With regulatory frameworks taking shape, institutions are now moving from experimentation to live implementation. Algeo observed that institutional participation in digital assets has evolved significantly. “A year ago, we were talking about experimentation and isolated use cases,” she said. “Now institutions are in production with digital-asset strategies and seeing real return on investment.” Global custodial banks are no longer on the sidelines. Many now have detailed product roadmaps for tokenised assets and settlement mechanisms, with custody remaining the foundation of every digital asset strategy. “You cannot have a credible approach without secure custody,” she said. Scaling tokenisation and unlocking markets Zodia Custody’s teams in the APAC region focus on enabling the tokenisation of real-world assets and developing tokenised payment and settlement mechanisms. These help banks and asset managers unlock liquidity, improve collateral management, and access new market segments. “In the back rooms with senior executives, everyone is talking about tokenisation,” said Algeo. “It is about reaching new clients, offering new products, and using tokenised assets as collateral. In just a year, we have gone from pilot projects to full transformation programmes.” Zodia Custody is already supporting many clients in designing tokenisation initiatives, providing the secure custody layer needed for clients to hold, transfer, and settle tokenised instruments. Infrastructure and compliance at scale Operating across six jurisdictions, Zodia Custody embeds and ensures regulatory alignment. “We’ve spent six years building a trusted digital asset custody business,” Algeo explained. “That means everything from onboarding clients to safeguarding their assets.” The firm’s end-to-end digital asset custody platform integrates risk management, compliance, and anti-money-laundering controls. Tools for client onboarding, transaction monitoring, and “coin-purity” checks are embedded into an orchestration layer that meets bank-grade security standards. Zodia Custody’s approach mirrors that of its banking shareholders. “Our platform is ISO- compliant and fully audited,” Algeo said. “We use an air-gapped, cold-wallet multi-signing process with no human access to the private keys. It is completely segregated and offline.” Compliance controls are embedded directly into the technology stack, and the company collaborates with global partners to adapt established financial crime prevention frameworks to digital asset operations. Some modules can be customised for each client’s risk appetite and jurisdiction. “We white-label our platform so banks can adopt a ready-made digital-asset solution at speed,” Algeo said. “Only a small percentage of the challenge is technology — the rest is operationalising it.” Looking ahead Algeo expects the next year to bring further growth for the APAC region, including Hong Kong’s institutional digital asset market. “By this time next year, we’ll see more banks in production with mature digital asset strategies,” she said. “There will be more tokenised assets in circulation, greater collateralisation and stablecoins gaining traction in Hong Kong.” For Zodia Custody, the focus remains on providing the infrastructure and expertise that let financial institutions participate securely and confidently in the digital asset economy. “We bridge traditional finance and decentralised finance,” Algeo said. “That’s where the future of custody lies.”
