Standard Chartered Chosen as 21Shares’ New Digital Asset Custodian
What’s Behind 21Shares Choosing Standard Chartered as Custodian?
Standard Chartered has been selected by digital asset manager 21Shares as its new crypto custodian, marking another push by major banks into a field long dominated by crypto-native firms. According to an announcement shared with Cointelegraph, the bank will provide digital asset custody through its Luxembourg-based platform, expanding the bank’s growing crypto infrastructure.
Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, said the partnership allows the firm to extend its expertise into “the quick-evolving digital asset ecosystem.”
The move raises a clear question: what happens to 21Shares’ existing crypto custodian? In June 2024, the company partnered with crypto-native Zodia Custody to hold its assets. Zodia was co-founded by Standard Chartered in 2020 but operated separately at a time when the bank publicly distanced itself from direct crypto exposure.
Whether Standard Chartered’s new custody unit will replace Zodia or operate alongside it remains unclear. Neither Standard Chartered nor 21Shares nor Zodia responded to media requests at publication time.
Investor Takeaway
Why Traditional Finance Is Expanding Into Crypto Custody
The partnership comes amid a broader wave of traditional finance . Standard Chartered launched an institutional crypto trading service in July, allowing corporate and professional clients to trade major tokens through a fully regulated channel.
For 21Shares, one of the world’s largest platform-traded crypto product issuers, bank-level custody adds perceived security and credibility — key factors for a firm whose products must meet institutional and regulatory standards across multiple jurisdictions.
Mandy Chiu, global head of product development at 21Shares, called the partnership an “significant milestone” in bringing institutional-grade infrastructure to the , citing Standard Chartered’s reputation in traditional finance.
The bank is not alone. U.S. Bancorp relaunched its in September later than previously pulling back due to regulatory pressure. Citigroup is exploring cryptocurrency custody and payment tools, and Deutsche Bank has reported plans to allow clients to store crypto assets.
European banks, in particular, are positioning themselves for the MiCA era — a regulatory framework that will tighten oversight over stablecoins, custodians and begining in 2025.
How TradFi’s Entry Is Reshaping Crypto Infrastructure
As more established banks move into the sector, crypto-native institutions are facing renewed competition. Banks bring regulatory clarity, balance-sheet strength, compliance frameworks and entrenched client relationships — advantages that can be decisive for asset managers managing billions.
This competitive shift is not without cultural backlash. Some long-time industry participants view the migration of large BTC wallets into ETFs, institutional channels and bank-backed custodians as a departure from the original crypto ethos.
Martin Hiesboeck, head of blockchain and crypto research at Uphold, argued in October that these moves represent “another nail in the coffin of the original crypto spirit,” as BTC transitions from grassroots asset to regulated financial instrument.
His criticism followed comments from BlackRock’s head of digital assets, Robbie Mitchnick, who revealed that the asset manager had already processed more than 3 billion dollars’ worth of real BTC conversions into ETFs. Many long-term holders, he said, prefer the convenience of managing exposure through their existing private-bank or advisor relationships.
Investor Takeaway
What Comes Next for Crypto Custody and Institutional Adoption?
Standard Chartered’s deepening involvement suggests that large financial institutions view digital asset custody as a core future revenue stream, not a side experiment. With ETFs, tokenized assets, and institutional trading volumes rising, custody has become a strategic pillar for banks looking to anchor themselves in the next wave of .
For 21Shares, the move reinforces its positioning as a compliant issuer in a market that increasingly requires institutional guardrails. For the broader industry, it underscores a trend: as regulation tightens, traditional finance is not just entering crypto — it is taking over parts of the stack that once belonged exclusively to crypto-native operators.
Whether this transition strengthens or dilutes the sector’s long-term identity is still debated. What is clear is that regulated banks now play a central role in the custody of billions in digital assets — and that role is likely to grow.
