Announcing Zodia Custody

Zodia Custody, one of the most trusted names in digital asset custody backed by financial giants like Standard Chartered Bank, Northern Trust, SBI Holdings, and National Australia Bank, has taken another leap forward in its mission to redefine institutional asset security. Known for its focus on delivering top-tier custody solutions for institutional clients, Zodia has partnered with Dfns to meet the growing demands.

This partnership introduces Dfns’ advanced wallet infrastructure, including Multi-Party Computation (MPC) technology, to Zodia’s already robust architecture, which includes air-gapped Hardware Security Modules (HSMs). The integration not only strengthens Zodia’s security framework but also enhances its ability to support a wider range of digital assets and onboard new blockchain networks more efficiently. For institutions navigating the rapidly evolving digital asset landscape, this collaboration represents a powerful step toward increased flexibility, scalability, and global reach, with Zodia reinforcing its presence in key markets such as the UK, UAE, and Hong Kong.

Zodia Custody, a global leader in digital asset custody

Zodia Custody provides customized digital asset custody solutions for institutional clients, enabling them to confidently navigate the digital asset landscape. Headquartered in London, Zodia operates in six other offices—Dublin, Luxembourg, Sydney, Singapore, Hong Kong, and Tokyo—with 120 employees supporting clients across 15 jurisdictions leveraging a unique global reach. Zodia is also licensed and registered with major regulatory authorities, including the UK’s Financial Conduct Authority (FCA), Central Bank of Ireland, and Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF). By combining cutting-edge technology with robust regulatory compliance, Zodia stands out as a trusted custody partner in institutional digital asset finance.

Since 2020, they’ve built a strong track record with clients putting their infrastructure to the test. Their work includes securely managing Bitcoin custody for Invesco’s European ETP BTIC, improving security and efficiency for Bitwise (formerly ETC Group), protecting assets for 21Shares' ABTC ETP, and enabling digital asset donations for Make-A-Wish UK Foundation to help critically ill children. Their services are centered around three key offerings:

• Custody: Secure digital asset storage designed for institutions and corporate investors.
• Interchange: Trade securely from cold storage with off-venue settlement through a broad network of trading partners.
• Gateway: Connect effortlessly to a growing ecosystem of trusted services integrated with Zodia Custody wallets.

Zodia supports over 50 crypto assets and operates 24/5 across the UK, UAE, and Hong Kong, helping institutions securely and efficiently unlock the potential of digital assets without compromise. Zodia adheres to the highest compliance standards, including:

• 5AMLD and the FATF Travel Rule.
• Alignment with Standard Chartered's AML, FCC, and KYC policies.
• Full registration with key regulatory authorities:some text
  • UK: FCA-registered as a crypto asset business under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017.
  • Ireland: Registered with the Central Bank of Ireland as a Virtual Asset Service Provider (VASP) under the Criminal Justice Act 2010.
  • Luxembourg: Recognized by the CSSF as a VASP under Anti-Money Laundering and Terrorist Financing laws.
  • Hong Kong: Registered with the Registry for Trust and Company Service Providers under the AMLO, Cap. 615.

Learn more about their policies and compliance:

• Financial Crime & Compliance
• Licenses & Authorisations
• Custody Policy

Dfns, the latest infrastructure tool in the wallet stack

Over the last five years, Dfns has built a world-class research team featuring leading cryptographers like Jonathan Katz, Nigel Smart, Chelsea Komlo, and Antoine Urban, who collectively have over 60,000 citations in multiparty computation and threshold cryptography. This deep expertise allows Dfns to push boundaries in cryptographic protocols, improving security, scalability, and performance for key generation and digital signatures across all blockchains. Our advancements in cryptography protocols and library code have positioned Dfns as a leader in modern key management for blockchain and crypto finance. Three out of the five papers chosen by NIST for their MPTS23 workshop on threshold signature recommendations were written by Dfns' research team.

Dfns supports all major cryptographic algorithms, including ECDSA, EdDSA, Schnorr, and STARK, as well as key derivation methods like SLIP and BPI. In 2023, we audited and open-sourced our Rust implementation of CGGMP21. In 2024, we completed the Rust implementation of KU23, which introduces key-independent pre-signing for ECDSA—used by Bitcoin, Ethereum, and EVM chains. KU23 significantly outperforms existing MPC protocols, handling hundreds of signatures per second. Dfns is also home to givre, the fastest FROST implementation for EdDSA-based blockchains like Solana, Cardano, Stellar, and Algorand. FROST was co-authored by Chelsea Komlo, who contributed to Dfns during her PhD. 

James Harris, Chief Commercial Officer at Zodia Custody, highlighted the significance of the partnership:

“Dfns’ highly accomplished cryptographers and their cutting-edge security and engineering capabilities impressed us from the start. With this integration, we can support more tokens, coins, and chains for our clients, and do so faster. This partnership strengthens our ability to adapt to the dynamism of digital asset regulations while maintaining our commitment to security and reliability.”

Zodia Custody’s HSM technology stack already provides top-tier security for high-value transactions. However, some risk scenarios require additional solutions. That’s where Dfns comes in, with its MPC infrastructure adding an extra layer of security. Zodia’s deployment scheme and threshold settings are carefully designed to handle both common and edge-case scenarios, ensuring data integrity, service availability, and business continuity. We’re highly impressed by their team’s work, particularly in setting up multi-regional mTLS-protected network connections with robust data center redundancy and advanced encryption techniques. By combining HSM and MPC technologies, Zodia meets the strict demands of institutional investors worldwide while continuing to innovate and expand its services.

Finally, Zodia Custody’s use of Dfns extends beyond advanced key management protocols, reflecting a shared commitment to security and compliance. Together, they have implemented robust measures to safeguard assets, streamline operations, and uphold complete governance through:

• Policy-Driven Security: Dfns' Wallet Entitlement Management System allows Zodia to enforce strict security policies, ensuring only authorized personnel can access critical systems.
• Governance Quorums: Multi-party approval processes prevent unauthorized changes to sensitive settings, reducing operational risks.
• Regulatory Compliance: Integration with tools like Chainalysis KYT ensures transactions comply with global AML and CTF regulations.
• Bank-Grade Security: Compliance with AML, FCC, and Travel Rule requirements, along with address whitelisting, ensures all transactions meet strict anti-financial crime standards.
• Passkey-Based 2FA: Employees must verify their identity using biometrics, PINs, encrypted passwords, or U2F devices before accessing any system.

Standing out in the crowded token custody market

With Dfns, Zodia gains access to a flexible and robust infrastructure, making it easier to support an expanding range of tokens. From Kaspa (KAS) and Internet Computer (ICP) to Telegram Open Network (TON), Origyn (OGY), Sei (SEI), and more, this partnership has equipped Zodia with unmatched speed and efficiency for onboarding new assets.

Dfns’ Blockchain Integration Kit (BIK) and advanced RPC node orchestration platform—featuring redundant node coverage, transaction idempotency, automated testing and more—make it one of the most reliable wallet API solutions available. These capabilities ensure seamless and dependable transactions from start to finish. Once a blockchain is integrated, Dfns can index the entire chain, automatically detect issued tokens, monitor incoming transactions via webhooks, fetch balances, process transfers, and support advanced chain-specific features like gas fee subsidies or token extensions.

By leveraging Dfns’ wallet infrastructure, Zodia Custody enhances its ability to handle a diverse and growing range of tokens and blockchains, addressing the evolving needs of institutional investors. This partnership positions Zodia as a leader in institutional digital asset custody, bridging traditional finance and the future of digital assets.

“Zodia Custody is building a strong foundation for the future, unlocking more opportunities and supporting more tokens for its clients,” said Harris. “With Dfns’ innovative technology, we are setting new standards in the industry and helping clients navigate the ever-changing landscape of digital assets.”

Additionally, Dfns’ unified API and user-friendly dashboard simplify Zodia’s operations by combining wallet management, compliance monitoring, and asset transfers in one platform. This streamlined approach reduces complexity, improves user experience, and speeds up the launch of new services.

Laying the foundations for institutional crypto custody

The partnership between Zodia and Dfns highlights the digital asset ecosystem's growing maturity. By combining Zodia Custody's institutional expertise with Dfns' advanced technology, the collaboration raises the bar for secure and compliant digital asset management. This alliance strengthens Zodia Custody's leadership as a top custodian and helps drive institutional adoption of cryptocurrencies. Together, Zodia and Dfns provide institutions with the tools and confidence to navigate the digital asset landscape, fostering a more innovative and inclusive financial future.

• Global reach: Dfns' flexible deployment capabilities enable Zodia Custody to operate seamlessly across jurisdictions like the UK, UAE, and Hong Kong, ensuring regulatory compliance and access to a wider client base.
• Rapid token support: Dfns' agile infrastructure allows Zodia Custody to quickly onboard new blockchains and assets, helping clients seize emerging investment opportunities.
• Enhanced security: Dfns' robust key management system, supporting various cryptographic standards and HSM integrations, delivers top-tier security for client assets.
• Streamlined operations: Dfns' single API and intuitive dashboard simplify operations, enabling Zodia Custody to efficiently manage a growing digital asset portfolio.