Standard Chartered’s digital asset arm is preparing for a major push into the Middle East by acquiring UAE-based Tungsten Custody.
Zodia Custody, the institutional-grade digital asset custodian backed by banking giant Standard Chartered and Northern Trust, is in advanced discussions to acquire Tungsten Custody, a licensed digital asset custody firm based in Abu Dhabi. This move could significantly strengthen Zodia’s foothold in the United Arab Emirates (UAE), a fast-growing hub for cryptocurrency and blockchain innovation.
The acquisition, which is still under review and subject to due diligence and regulatory approval, highlights Zodia’s global expansion ambitions. If completed, the deal would give Zodia a fully licensed operational base in the Abu Dhabi Global Market (ADGM), one of the UAE’s key financial free zones.
Strategic Expansion in the Middle East
Zodia Custody has been actively expanding across multiple continents since its launch in 2020. It already operates in the UK, Ireland, Luxembourg, and several parts of Asia, including Singapore, Hong Kong, and Japan. The UAE, however, presents a unique opportunity. With a supportive regulatory environment, a strong appetite for digital transformation, and rising institutional interest in digital assets, the region is viewed as a critical market for the next phase of Zodia’s growth.
Julian Sawyer, CEO of Zodia Custody, described the potential acquisition of Tungsten Custody as “a pivotal moment” in the company’s global strategy.
“This acquisition would give us licensed, operational scale within the ADGM and unlock deep connectivity with the region’s sovereign and institutional ecosystem,” said Sawyer. “It’s not just about geographic expansion—it’s about building long-term infrastructure in one of the world’s most forward-looking markets for digital assets.”
Why the UAE?
The United Arab Emirates has emerged as a leader in the digital asset space, supported by progressive regulations, government-backed blockchain initiatives, and growing interest from both retail and institutional investors. Around 30% of the UAE’s population is estimated to hold cryptocurrency, making it one of the highest crypto adoption rates in the world.
Abu Dhabi’s ADGM has played a central role in fostering a secure and compliant environment for blockchain companies. Tungsten Custody, which is based in the ADGM, was one of the early adopters of the market’s digital asset framework. The firm is fully licensed by the Financial Services Regulatory Authority (FSRA) of the ADGM to provide custody services for a variety of digital tokens. This includes assets like Bitcoin, Ethereum, and Toncoin (TON).
The acquisition of such a regulated and well-established platform would give Zodia an immediate operational presence in the UAE’s most advanced financial ecosystem.
Backing from Heavyweights
Zodia Custody was born out of SC Ventures, the innovation and fintech investment arm of Standard Chartered, in partnership with Northern Trust. Both institutions have deep roots in global financial markets and are committed to bringing institutional-grade trust and security to the digital asset world.
More recently, Zodia also attracted investment from Emirates NBD, one of the largest banking groups in the Middle East and North Africa. This backing underscores the increasing interest from regional powerhouses in secure, institutional-grade crypto infrastructure.
Emirates NBD has been pushing its digital transformation strategy under the UAE’s national economic agenda, known as the Dubai Economic Agenda D33. Part of this plan includes boosting the country’s competitiveness in emerging technologies such as blockchain and Web3. The bank’s investment in Zodia Custody signals a clear intention to become a major player in digital asset services.
A Growing Global Custody Network
Zodia Custody has been positioning itself as a leading global provider of institutional crypto custody services. The company’s platform is built to meet the same standards expected in traditional finance, including anti-money laundering compliance, insurance, and regulatory oversight.
By expanding into the UAE, Zodia aims to offer its full suite of services—including safekeeping of digital assets, settlement, and compliance solutions—to institutional clients across the Middle East.
This is especially timely, as regional demand for such services continues to grow. Financial institutions, sovereign wealth funds, and large corporations across the Gulf region are becoming more interested in cryptocurrencies—not just for trading, but as long-term assets that require secure storage and regulatory assurance.
Tungsten’s infrastructure, licenses, and existing relationships with local and international firms would give Zodia a significant advantage in entering this high-potential market.
Market Trends Point to Strong Demand
Global investment in digital assets is steadily increasing, and custody services are a critical part of the infrastructure needed to support that growth. Unlike retail investors who may store crypto in personal wallets, institutions require trusted, compliant, and secure third-party custodians to manage their digital asset holdings.
In recent years, several major banks and financial institutions have entered the crypto custody space, reflecting the demand for more institutional-grade solutions. The Middle East, in particular, has seen an influx of blockchain and crypto firms setting up operations, attracted by the region’s friendly regulations and appetite for innovation.
Analysts expect the digital asset market in the UAE to grow by more than 8% annually over the next four years. This trajectory aligns well with Zodia’s global vision and reinforces the strategic timing of the Tungsten acquisition.
What’s Next?
While the deal is not yet finalized, both parties are undergoing detailed due diligence, and further updates are expected in the coming months. Once regulatory and shareholder approvals are secured, Zodia Custody would officially take over Tungsten’s operations and integrate them into its global network.
If successful, this acquisition would mark one of the most important moves in the digital asset custody space in the region to date. It would not only give Zodia a stronghold in one of the world’s most dynamic crypto markets but also help accelerate the UAE’s vision of becoming a global leader in digital finance.
For Zodia Custody, it’s another step in building a safer, more connected, and more institutionalized digital asset world.
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