Asian Tech Press (Oct 30) -- Standard Chartered's crypto custodial unit Zodia Custody Ltd., is launching its services in Hong Kong, according to CNBC.

Zodia CEO Julian Sawyer said that demand for cryptocurrencies in the Hong Kong market is driven by institutional rather than retail investors, adding that this is the ideal clientele for Zodia, the report said on Sunday.

Sawyer also said that the Hong Kong government and regulators see digital assets as the future and want Hong Kong to become a hub.

Founded in 2020, Zodia has offered services in Japan, Singapore and Australia in recent months, with Hong Kong being the last stop on its Asia-Pacific tour.

Hong Kong's Securities and Futures Commission (SFC) launched a licensing regime for virtual asset trading platforms earlier this year, and so far only OSL Digital and Hash Blockchain have received such licenses.

Sawyer said Zodia is beginning its expansion in Hong Kong in phases, first looking to provide services for Hong Kong clients in a limit set of crypto assets.

At present, Zodia is discussing relevant regulatory issues with the SFC and the Hong Kong Monetary Authority (HKMA).