Emirates NBD powers digital asset custody in the UAE through investment in Zodia Custody

3 Min | 12 December 2024

Bank invests in Zodia Custody through its Innovation Fund
Investment reinforces Emirates NBD’s digital assets strategy and bridges the gap between financial services and institutional digital assets investment in line with the Dubai Economic Agenda

Dubai, UAE, 12 December 2024: Emirates NBD, a leading banking group in the Middle East, North Africa, and Türkiye (MENAT) region has invested in Zodia Custody, a prominent institution-first digital asset custodian.

The strategic equity investment was made by Emirates NBD’s Innovation Fund, the bank’s corporate venture fund. Created in 2023, the fund strengthens the bank’s digital ambitions and regional expertise in synergy with the agility and technological innovations of FinTech companies.

The UAE is swiftly evolving to become a progressive crypto hub following landmark crypto-friendly policies and the highest cryptocurrency adoption rates in the world. About 30% of the population owns cryptocurrency and the crypto market is expected to increase by 8% year-on-year over the next four years.

Headquartered in London, Zodia Custody tailors digital asset custody solutions for institutional clients in alignment to regulatory requirements, ensuring institutions can make informed investment decisions according to market trends with the highest levels of security. Emirates NBD’s investment in Zodia Custody marks a monumental step forward for the firm and reinforces its vision for the future of digital assets.

Marwan Hadi, Group Head of Retail Banking and Wealth Management, Emirates NBD, said: “Our strategic investment in Zodia Custody reflects our commitment to creating an environment where digital asset trading venues and forward-thinking institutions can interact safely, securely and without compromise. FinTech is changing the institutional landscape rapidly and we want to ensure our ongoing support to emerging technologies to bolster this growth by bridging the gap between financial services and digital assets.”

He added: “Our investment is significant in light of the UAE’s progressive approach to digital asset regulation and its ambition to become a global innovation and technology hub. Additionally, it aligns with the Dubai Economic Agenda D33 that envisages the Emirate among the top four global financial hubs and a preferred capital market in the Middle East, Africa and South Asia region.”

Neeraj Makin, Group Head of Strategy, Analytics and Venture Capital at Emirates NBD, said: “Emirates NBD has decades of experience in leveraging innovation to simplify banking. The investment in Zodia Custody’s robust and unique offerings positions Emirates NBD at the forefront of digital asset innovation, a trillion-dollar-asset class. The MENAT region is transforming rapidly into a key player in the crypto economy fuelled by institutional and enterprise activity and a growing appetite for DeFi and Stablecoins. In line with our vision to be a digital leader in the region, we are making strategic investments via the Innovation Fund and committed to fostering a culture of innovation.”

Julian Sawyer, CEO of Zodia Custody, said: “As the fifth bank to cast a vote of confidence in our proposition, we are beyond grateful to Emirates NBD for placing their trust in us. This investment is a monumental step forward, paving the way for Zodia Custody to become a leading player globally.”

Alex Manson, CEO of Standard Chartered Ventures, said: "Emirates NBD’s investment marks the fifth TradFi institution supporting our Digital Assets venture Zodia Custody. As we build an ecosystem of infrastructure to operate Digital Assets at institutional grade, we are grateful for this recognition, support and most importantly look forward to our partnership.”

The Innovation Fund targets investment in a wide range of stages for the Group, from early to growth, with the aim of delivering strategic benefits and realising long-term returns from investments. The purpose of the Innovation Fund is to support the organisation’s ambitions to be at the forefront of innovation, key industry trends including disruptions and continue to offer customers best-in-class digital experiences.

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