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

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As a seasoned crypto investor with over two decades of experience navigating the ever-evolving financial markets, I am thrilled about the collaboration between Zodia Custody and Securitize. This partnership underscores the growing recognition of tokenized assets by institutional investors, including industry giants like BlackRock.

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

The partnership is designed to strengthen the assistance given to institutional investors dealing with token-based assets, such as BlackRock’s USD Institutional Digital Liquidity Fund – BUIDL. As per their statement, Zodia Custody plans to leverage Securitize’s technology to broaden its custodial services for institutional clients managing tokenized assets.

Zodia’s custody service offers secure offline storage, maintaining separation and adherence to regulatory norms for clients’ assets. This aspect is crucial for institutional investors, as it emphasizes the security of their investments amidst the rapidly developing digital asset industry.

Zodia Trust, located in London, serves as a guardian for digital assets, enjoying backing from significant financial entities such as Standard Chartered, Northern Trust, and SBI Holdings.

Tokenization accessibility

Transforming tangible assets such as property, shares, or investments into digitized units known as tokens, which are then kept on a blockchain, is what tokenization entails. These digital tokens symbolize ownership and can be swapped or handled with greater ease compared to conventional financial tools.

This method is becoming more popular because it’s cost-effective and easier for investors to get involved. Take BUIDL, for example – it has amassed a staggering $530 million in managed assets ever since its debut in March 2024.

By 2028, it’s expected that the value of markets dealing with tokenized real-world assets could outgrow the $4.5 trillion worth of cryptocurrencies. Although USD stablecoins have been the primary drivers in tokenization so far, there is a rising trend of innovative products tied to assets such as debts and properties making their appearance in the market.

In his remarks about the partnership, Zodia’s CEO Julian Sawyer highlighted BUIDL’s expansion, pointing out that it underscores the potential of tokenized assets and their ability to revolutionize both conventional finance and innovative online enterprises.

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2024-11-26 18:38