Zodia Custody and Securitize Form Partnership for Tokenized Assets
Recently, Zodia Custody, a London-based digital asset custodian, has entered into a partnership with Securitize, a company leading the way in the tokenization of real-world assets. The purpose of this collaboration is to augment the support offered to institutional investors participating in the market for tokenized assets.
Key to this venture is BlackRock’s USD Institutional Digital Liquity Fund, fondly known as BUIDL. This specific alliance enables Zodia Custody to deploy Securitize’s technology as a means of expanding the scope of its custody services, catered particularly to institutional clients dealing with tokenized assets.
The Importance of Secure Cold Storage with Zodia Custody Solution
Product security sits at the very heart of Zodia’s custody solution. The company uses secure cold storage to ensure that client assets are not only segregated but are also compliant with regulatory standards. In the ever-evolving digital asset market, such safety measures are of paramount importance, particularly to institutional investors who put asset security above all else.
Backed by Major Financial Institutions
Zodia Custody enjoys backing from several significant financial institutions. Some of these include Standard Chartered, Northern Trust, and SBI Holdings. Based in London, Zodia’s position as a digital asset custodian is reinforced by this broad institutional support, highlighting the firm’s reliability and trustworthiness.
The Rise of Tokenization
The process of tokenization involves the conversion of physical assets like real estate, stocks, or funds into digital tokens that can be stored on a blockchain. Each of these tokens represents ownership and can be traded or managed more efficiently than traditional financial instruments. This process is gaining momentum ride due to its cost-efficiency and the increased accessibility it offers to investors. For instance, BUIDL has managed to pull in $530 million in assets under management since its inception in March 2024.
Projected Growth in the Tokenization Market
The market for tokenized real-world assets is forecasted to exceed the $4.5 trillion cryptocurrency market capitalization by 2028. Presently, USD stablecoins hold the largest share of tokenization use cases, but we are seeing the emergence of products tied to assets like debt and real estate. This diversification of the tokenized market speaks to the tremendous growth potential it houses.
Potentials in Tokenized Assets
Julian Sawyer, CEO of Zodia, underlines the importance of the partnership with Securitize. He asserts that BUIDL’s growth is indicative of the opportunities that lie in tokenized assets and how they can revolutionize both traditional finance and digital industries. He further reiterates his commitment to leveraging these opportunities for the betterment of their clients.
