Zodia Custody teams up with Securitize for institutional access to tokenized assets

Zodia Custody has partnered with Securitize, a leader in tokenizing real-world assets.

The collaboration aims to increase support for institutional investors interested in tokenized assets, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). Zodia Custody will use Securitize’s technology to expand custody services to institutional clients with tokenized assets, according to the company announcement.

Zodia’s storage solution includes secure cold storage, ensuring customer assets are kept separate and compliant with regulatory standards. This is especially important for institutional investors who prioritize the security of their assets in the emerging digital asset market.

London-based Zodia Custody is a digital asset custodian backed by major financial institutions including Standard Chartered, Northern Trust and SBI Holdings.

Tokenization accessibility

Tokenization involves converting physical assets such as real estate, stocks, or funds into digital tokens stored on a blockchain. These tokens represent ownership and can be traded or managed more efficiently than traditional financial instruments.

This process is gaining traction due to its cost efficiency and increased accessibility for investors. BUIDL, for example, has raised $530 million in assets under management since its launch in March 2024.

The market for tokenized real-world assets is predicted to surpass $4.5 trillion in cryptocurrency market capitalization by 2028. While USD stablecoins currently dominate tokenization use cases, new products linked to assets such as debt and real estate are emerging.

Zodia CEO Julian Sawyer emphasized the importance of the partnership: “BUIDL’s growth demonstrates the opportunities in tokenized assets and their transformative potential for both traditional finance and digital native businesses.”