TradFi Develops Blockchain Foundations, Transforming International Financial Systems
- Traditional banks like Standard Chartered and Citi expand crypto custody services, partnering with firms like 21Shares to integrate digital assets into core infrastructure. - Strategic moves include Standard Chartered consolidating custody under its parent bank and Citi enhancing fiat-stablecoin transaction capabilities with Coinbase . - Regulatory developments, such as Japan's proposed reserve rules for exchanges , and $4.65B Q3 2025 crypto VC funding highlight sector maturation and institutional adopti
Established financial institutions are ramping up their involvement in the cryptocurrency industry, as evidenced by 21Shares appointing Standard Chartered to safeguard its digital assets. This decision highlights the increasing impact of traditional finance on crypto infrastructure. The Swiss asset management firm, which had previously worked with Zodia Custody—a crypto-focused arm of Standard Chartered—now appears to be centralizing its custody operations within the bank’s larger structure.
21Shares, known for its crypto exchange-traded products, pointed to Standard Chartered’s strengths in international banking and risk oversight as major benefits.
This transition brings up questions about the future of Zodia Custody. As a fully owned subsidiary of Standard Chartered since 2020, Zodia had previously managed 21Shares’ assets, indicating the bank’s earlier intent to keep direct crypto exposure at arm’s length. However,
Investment patterns also reflect the industry’s transformation.
As banks and regulators continue to adapt their strategies, the crypto sector stands at a pivotal point. With institutions like Standard Chartered and Citi weaving digital assets into their main services, the boundaries between traditional finance and crypto are becoming less distinct—a transformation that could reshape the global financial system.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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