Zodia Custody Secures ADGM Approval to Launch Digital Securities Custody in Abu Dhabi

Zodia Custody’s regional subsidiary, Tungsten Custody Solutions, has secured regulatory approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market to expand its license to include digital securities. This move allows the institution-focused platform to support tokenised money markets and traditional assets moving onchain, providing a regulated bridge for banks seeking bank-grade custody.

What was announced

The Financial Services Regulatory Authority (FSRA) of ADGM, the international financial centre of Abu Dhabi, has approved a Variation of Permission for Tungsten Custody Solutions Limited. This regulatory milestone permits the Zodia Custody subsidiary to include the custody of digital securities within its existing license. The expansion is designed to address the increasing institutional demand for tokenised real-world assets (RWAs), particularly within money markets, equities, and fixed-income sectors.

The updated license enables the platform to support the migration of traditional securities markets onto blockchain infrastructure. This is a response to significant market projections; tokenised RWA growth is expected to reach $16 trillion by 2030, while tokenised equities alone are forecast to hit $750 billion by the end of 2028. By securing this permission, the firm can now provide custody and settlement services for both digital and traditional assets for clients within the UAE and the broader region.

The approval allows for the safeguarding of tokenised securities and tokenised commodities to a "bank-grade" standard. This is particularly relevant for treasury teams at financial institutions that are increasingly holding tokenised funds alongside stablecoins for collateral and cash management. This development adds to the existing suite of registrations and permissions held by Zodia Custody entities across the Asia-Pacific region, the Middle East, and Europe, reinforcing its position in the global institutional crypto asset market.

"Treasury teams at financial institutions are already holding tokenised funds alongside stablecoins for cash management and collateral, and they need a custodian that safeguards those holdings to the standard their regulators, clients and boards expect. This approval means we can offer bank-grade custody for tokenised securities as well as tokenised commodities in ADGM, and we expect demand for both to grow across the region."

Richard Clark, CEO of Zodia Custody.

The companies involved

Zodia Custody is an institution-first crypto asset platform incubated by SC Ventures, the innovation arm of Standard Chartered. The company is backed by a consortium of major financial institutions, including Northern Trust, SBI Holdings, Emirates NBD, and National Australia Bank. These partnerships place the firm at the intersection of traditional Tier 1 banking and digital asset infrastructure.

Standard Chartered, a leading international banking group, maintains a significant presence in the digital asset space and has been a primary driver behind the platform's development. Northern Trust brings extensive experience in global custody and asset servicing, while Japan-based SBI Holdings provides a strong foothold in the Asian markets. Locally, Emirates NBD is one of the largest banking groups in the Middle East, offering deep regional market insight. Tungsten Custody Solutions serves as the specific regional entity through which these services are delivered in the Abu Dhabi Global Market. Together, these stakeholders provide the platform with the regulatory weight and technical infrastructure required to service institutional investors who require high-compliance environments for crypto and tokenised holdings.

What FF News has reported before

FF News has closely followed the digital asset activities of Zodia’s backers. Recently, it was reported that Standard Chartered Launches Institutional Custody for Ripple USD (RLUSD) on XRP Ledger, demonstrating the bank's active role in the stablecoin ecosystem. The bank also recently strengthened its leadership in this sector, as Standard Chartered Names Ying Ying Tan as Global Head of Securities Services and Digital Assets.

In the wider investment landscape, SBI Holdings, Mesh, and Money Forward to Launch Crypto Infrastructure Joint Venture in Japan, highlighting the global push for robust digital asset frameworks. Additionally, regional partner Emirates NBD Partners with Visa and Tripadvisor to Launch UAE’s First Bank-Led AI Travel Assistant, showing the bank's broader commitment to technological integration in the UAE financial sector.

What this means

This license expansion signals a shift in the digital asset industry from "crypto-native" speculation toward the "onchaining" of traditional finance. By securing the ability to hold digital securities in ADGM, Zodia Custody is directly challenging legacy custodians who have been slower to adapt their infrastructure for blockchain-based assets. The move places significant pressure on traditional asset servicers to either partner with digital-first custodians or accelerate their own internal migrations. As tokenised money markets gain traction, the industry faces a critical question: will liquidity remain fragmented across different chains, or will regulated custodians successfully act as the unifying layer for institutional settlement?