Zodia Custody seeks acquisition of Tungsten crypto custodian

Zodia Custody seeks acquisition of Tungsten crypto custodian

Zodia Custody, the institution-first digital assets platform backed by Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD, is exploring the potential acquisition of UAE regulated Tungsten Custody Solutions.

According to the press release, the acquisition would significantly expand Zodia Custody’s operational footprint in the Middle East and would benefit from Tungsten’s licensing within the Abu Dhabi Global Market (ADGM).

Additionally the integration with Tungsten Custody Solutions, Zodia Custody would enhance its ability to deliver secure, digital asset custody services in the region. Tungsten also holds an Initial Approval and No-Objection Certificate from Dubai’s Virtual Asset Regulatory Authority (VARA). Zodia Custody will continue the process of obtaining its full Virtual Asset Service Provider (VASP) license from the Dubai regulator.

As part of the transaction, Further Ventures, Abu Dhabi’s leading digital asset-focused venture capital firm, would also join Zodia Custody’s cap table. Further Ventures incubated Tungsten Custody Solutions from inception and brings deep institutional ties across the UAE’s investment, innovation, and regulatory ecosystems.

“The UAE is setting the global standard for digital asset infrastructure – and we’re here to build with it,” said Julian Sawyer, CEO of Zodia Custody.

“It’s a natural move for us to explore joining forces with Mohamed Hamdy and the team at Further Ventures, who are recognised leaders in fostering growth and innovation within the global digital asset landscape. We are looking forward to learning from their expertise and in-market insights as we work to expand our presence in the UAE.

“This acquisition would give us licensed, operational scale within ADGM and unlock deep connectivity with the region’s sovereign ecosystem. It’s a pivotal moment in our global strategy.”

Mohamed Hamdy, Managing Partner at Further Ventures, comments, “We are excited to explore joining Zodia Custody on its journey to becoming the global leader in institutional digital asset custody solutions. Zodia’s robust infrastructure, world-class team, and exceptional track record provide a powerful foundation to accelerate the adoption of digital assets across the Middle East and beyond. This partnership would not only be strategic but would align perfectly with our vision of nurturing transformative companies within the UAE’s digital economy.”

Completion of the acquisition is subject to the completion of due diligence and regulatory approval, shareholders’ approvals and satisfaction of other customary closing conditions. This news comes alongside key leadership appointments, including Dominic Longman, previously Senior Executive Officer at Binance Abu Dhabi Limited, now serving as Managing Director, Middle East and Africa (MEA). He is joined by Zane Suren, Managing Director of Commercial, MEA, who relocated to the UAE earlier this year, and will lead Zodia Custody’s regional growth from its ADGM-regulated hub.

UAE regulated Tungsten Custodian receives SOC2 Type 2 certification

UAE regulated Tungsten Custodian receives SOC2 Type 2 certification

UAE regulated Tungsten Custody Solutions Ltd, a leading regulated digital asset custodian, has successfully retained its SOC 2 Type 2 certification with an Unqualified Opinion from Ernst & Young, one of the world’s leading professional services firms.

As per the announcement the achievement underscores Tungsten’s commitment to the highest standards of security, compliance, and risk management in safeguarding digital assets. The recognition of retaining SOC2 Type 2 builds on the 2024 Continuity Insurance and Risk Global Category shortlisting of Tungsten Custody Solutions in November 2024 and also Tungsten’s ISO27001:2022 accreditation, which has also been retained following successful surveillance assessment in December 2024.

The SOC 2 Type 2 certification is a globally recognized audit standard developed by the American Institute of Certified Public Accountants that evaluates an organization’s controls over security, availability, processing integrity, confidentiality, and privacy. Achieving this certification with an “Unqualified Opinion.” This is the highest level of assurance that demonstrates that Tungsten has implemented and maintained industry-leading security and compliance controls without exception.

Jose J. Perez Aguinaga, SEO of Tungsten, commented, “As a regulated custodian, security and risk management are at the core of everything we do. Retaining SOC 2 Type 2 with an Unqualified Opinion from EY is a testament to our unwavering commitment to providing our clients with the highest level of security and operational excellence in digital asset custody. This milestone reinforces our position as a trusted partner for institutions navigating the digital asset landscape.”

Rushikesh Shreshtha, Chief Information Security Officer (CISO) of Tungsten, added, “Security is the foundation of digital asset custody, and achieving SOC 2 Type 2 certification confirms our ability to meet the strictest security and compliance standards. Our team has worked diligently to establish best-in-class security protocols, risk management frameworks, and operational resilience. This certification is not just a milestone, it’s a reflection of our ongoing commitment to securing digital assets in an evolving threat landscape.”

The achievement further strengthens Tungsten’s reputation as a secure and compliant custody provider, ensuring institutional clients, asset managers, and enterprises can rely on its best-in-class infrastructure for safeguarding their digital assets.

UAE’s first home grown crypto custodian officially launched

UAE’s first home grown crypto custodian officially launched

Tungsten headquartered in UAE has officially launched the first home grown and regulated crypto custodian after receiving a license from UAE’s Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM). The platform is designed to store digital assets securely for institutional investors.

Over 12 months to July 2023, the value of digital assets received by the UAE was over US$34.9 billion (Chainalysis). Approximately 67%, or around US$23 billion in transactions, was carried out by institutional investors, demonstrating a significant opportunity for specialist digital assets custody.

As a regulated custodian, Tungsten aims to provide peace of mind for institutions investing in digital assets, including cryptocurrency. 

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We congratulate and welcome Tungsten to Abu Dhabi’s international financial centre, ADGM. As much as the ever-evolving digital asset space needs regulatory controls to protect investors, it also needs risk management services that enable them to understand and invest securely. The concept of Tungsten revolves around this and allows it to harness the opportunities within this industry. As custodian of virtual assets, Tungsten’s offerings, coupled with ADGM’s vibrant ecosystem and progressive regulations for digital assets, will empower investors and maintain market integrity with robust solutions.”

Chris Desjardins, Tungsten Founder and Senior Executive Officer said: “Digital assets present unprecedented opportunities across generations, yet the cornerstone of realising their potential lies in establishing a trusted investment environment. The UAE is at the forefront of this transformation, crafting a robust framework for digital assets that not only sets a global benchmark but also positions it as a pioneering force in the finance sector of tomorrow. Our immense pride stems from being developed and regulated within the UAE, a testament to our commitment to excellence and innovation in this dynamic landscape.”

Tungsten provides secure, regulated crypto custody so clients can confidently invest in digital assets. It is led by Chris Desjardins, an industry veteran with deep knowledge and experience in building and growing digital assets and cryptocurrency solutions. Previously, he co-founded Big Index, a Canadian institutional crypto wallet technology provider successfully acquired by Brane Inc., where he became Head of Product. Through his leadership, Tungsten sets an unparalleled benchmark for digital asset custody.

Tungsten is independent and segregated from other digital asset services, such as the trading of crypto assets, focusing purely on safeguarding clients’ digital assets. The business ensures secure online and offline procedures, including bank-grade physical vaults, enterprise-grade wallet management and world-class network hardware. Additionally, clients benefit from strong governance and high insurance coverage, providing utmost reassurance to institutional investors.

Over 2024, Tungsten, the UAE homegrown crypto custodian will scale customer acquisition, catering to a growing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs).

Tungsten had previously started hiring for key positions and as per their press release will continue to.