Zodia Custody (Ireland) has been registered as a virtual asset service provider (VASP) by Luxembourg’s regulator Commission de Surveillance du Secteur Financier (CSSF).
The registration means Zodia Custody (Ireland) will be able to provide the transfer of cryptoassets alongside the safekeeping and administration of cryptoassets or instruments. It will also enable control over cryptoassets, including custodian wallet services.
It is the first entity partnered with a bank and dedicated cryptoasset custodian to achieve this status.
This registration signals a “pivotal moment for the crypto custodian”, as it aims to capitalise on increased interest from Luxembourg’s financial institutions to take advantage of maturing crypto markets, says Zodia Custody.
Zodia Custody cites a research report from PwC and the Association of the Luxembourg Fund Industry, which shows that 63 per cent of surveyed financial institutions believe that crypto either is currently, or will become, a strategic priority over the next three years.
However, this contrasts with the level of readiness of respondent firmsto provide exposure to the crypto market for their clients. The same report found that 21 per cent of respondent firms have implemented or are implementing cryptoasset products or services, while 40 per cent are at various stages of deliberating this project, and 39 per cent have no plans to do so.
Zodia Custody (Ireland) was listed on the Central Bank of Ireland’s VASP register in August 2022, with approval to provide commercial services to clients in Ireland. In the UK, Zodia Custody is registered with the Financial Conduct Authority to provide commercial services to clients as a cryptoasset business.
John Cronin, CEO of Zodia Custody (Ireland), says: “There is a massive opportunity for financial institutions to offer a range of products and services related to cryptoassets. We are seeing increasing interest in establishing products from managers and investors.”
Julian Sawyer, CEO of Zodia Custody, comments: “As a bank-owned business, we intimately understand the needs and requirements for financial institutions to safely enter the market. We look forward to engaging with the institutional ecosystem in Luxembourg, to help begin and accelerate their cryptoasset journeys.”
