Zodia Custody, backed by Standard Chartered Bank has shown interest in offering its services not only in the UAE but in Qatar as well.
Recently, Gerry Afentakis, Head of Europe & MENA Sales at Zodia Custody visited the Qatar Development Bank along with members from the Qatar Financial Authority.
Hani Khateeb, Fintech Specialist Advisor of Qatar Fintech Hub at the Qatar Development Bank noted on LinkedIn, “Today, we had the pleasure of hosting Zodia Custody and Qatar Financial Centre (QFC) Authority at Qatar Development Bank offices. We were joined by Gerry Afentakis from Zodia, who shared their latest achievements, milestones, and provided valuable insights into their role in the institutional digital asset custodianship market globally.”
He added, “It was especially impressive to learn about their shareholder and list of banking customer in both the MENA region and internationally. During our discussions, we explored potential collaborations in the exciting world of digital assets here in Qatar aligning with existing frameworks and future plans for paving the way for this new technology to flourish within Qatar’s financial sector.”
The visit of Zodia Custody’s Head of Europe and MENA Sales executive, comes after Qatar launched its digital assets framework, and DLT framework. Qatar’s digital assets regulation allows for the tokenization of real-world asset, excluding cryptocurrencies and stablecoins.
The Qatar Digital Assets Lab was also created to develop tokenization platforms for tangible and intangible assets including real estate assets, securities, Sukuk, bonds and others in the future utilizing DLT (distributed ledger technologies), blockchain, and smart contracts.
Moreover, the framework also allows for tokens and token custodians, exchanges, transfer providers and validators, as well as token issuers.
As per the framework, “Token custody services mean holding or controlling tokens on behalf of clients; or holding or controlling the means by which clients’ tokens may be recorded and transacted on token infrastructure. A company that holds or safeguards the private keys for its clients’ tokens is providing custody services in relation to those tokens. An entity licensed to provide token custody services may be referred to as a token custodian.”
This could be why Zodia Custody is now interested in visiting QFC after it started its journey in the UAE. Replying to Khateeb, Afentakis stated on LinkedIn, “Thank you, Qatar Development Bank, and your exceptional colleagues (Mayssa Mrabet & Kevin) for the wonderfully warm Qatari hospitality and for such an astute and fruitful discussion. So much to look forward to.”
Replying to Lara on the Block, Afentakis in a message noted, “We are very much exploring Qatar, and will be setting up in UAE in both VARA and ADGM in Q1 of 2025.”
In 2023, Standard Chartered’s backed digital asset platform, Zodia markets, received an In-Principal Approval (IPA) fulfilling the pre-requisites to receive a Financial Services Permission (FSP) for OTC broker-dealer in virtual assets by Abu Dhabi Global Market (ADGM), Abu Dhabi’s international financial center.
Zodia Markets chose to expand into the UAE as the region establishes itself as a rapidly emerging hub for digital assets. The strategic expansion provides institutional investors from the Middle East and Africa with reliable access to this growing, alternative asset class, consolidating Zodia Markets’ position as an integral part of the global digital asset landscape.
In an article on Zodia Custody website they note that with all the growth being witnessed in UAE and GCC region in terms of blockchain and digital assets businesses, the banking sector has sometimes been tentative in embracing the crypto industry. The article states, “With crypto firms situated there reporting that they still struggle to access banking services. This hurdle is now starting to be removed as some players are beginning to offer digital asset-friendly services. Major financial institutions are also requesting proposals and seeking providers for virtual asset services.”
This is why a year ago, UAE based Standard Chartered signed a memorandum of understanding (MoU) with Dubai International Financial Centre (DIFC) to collaborate on digital assets, including digital asset custody through its Zodia Custody entity. At the time Standard Chartered noted that its new services would be powered by its subsidiary Zodia Custody.
In 2024, Brevan Howard became the first client for Standard Chartered regulated crypto custody service out of DIFC. DIFC (Dubai International Financial center) regulator DFSA.
