Zodia Custody says it is exploring acquiring UAE-based Tungsten Custody, a digital asset custody firm that holds a license in the Abu Dhabi Global Market (ADGM). Zodia was founded by Standard Chartered’s SC Ventures and Northern Trust, with other backers including Japan’s SBI, National Australia Bank (NAB) and Emirates NBD.
Emirates NBD invested in late 2024, but Zodia Custody doesn’t currently have a license in the UAE. In addition to the ADGM license, Tungsten also has initial approval from the Dubai regulator VARA. Hence, the acquisition would accelerate the regulatory approval process for Zodia Custody.
“This acquisition would give us licensed, operational scale within ADGM and unlock deep connectivity with the region’s sovereign ecosystem. It’s a pivotal moment in our global strategy,” said Julian Sawyer, CEO of Zodia Custody. The company already has activities in the UK, Ireland, Luxembourg, Hong Kong and Singapore, as well as a joint venture in Japan.
Meanwhile, Tungsten is backed by Abu Dhabi’s Further Ventures, which would become a shareholder in Zodia Custody if the transaction proceeds.
“This partnership would not only be strategic but would align perfectly with our vision of nurturing transformative companies within the UAE’s digital economy,” said Mohamed Hamdy, Managing Partner at Further Ventures.
Apart from due diligence, the acquisition still needs approval from shareholders and regulators. Zodia has announced several new hires in the UAE, including Dominic Longman who joins from Binance Abu Dhabi.
Last year Zodia Custody landed numerous asset managers and crypto firms as new custody clients. They include Deutsche Bank’s 21Shares, DWS, Galaxy Digital and Securitize among others.
