Zodia Custody wins Luxembourg payment licence for stablecoins

Zodia Custody has been granted a Payment Institution licence by Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF). The authorisation covers custody and transfers of Electronic Money Tokens (EMTs), a regulated form of stablecoin, and complements the firm’s MiCA Crypto-Asset Service Provider (CASP) authorisation.

The licence allows Zodia to extend its custody services to include EMTs and to operate transfers across the EU under Luxembourg’s payments framework. The MiCA CASP authorisation covers wider crypto-asset services under the EU’s MiCA (Markets in Crypto-Assets) rules.

Zodia was co-founded in 2020 by Standard Chartered and Northern Trust. Investors in the business include SBI Holdings, Emirates NBD and National Australia Bank. In May, Standard Chartered moved to take full control of Zodia to integrate the business into its digital asset custody, financing and securities services. Zodia also holds regulatory permissions in the UK, UAE, Hong Kong, Singapore and Australia.

Ami Nagata, managing director for Luxembourg at Zodia Custody Europe, commented: “Institutional adoption of crypto assets demands infrastructure that meets the highest standards of regulatory adherence and operational efficiency. Securing a Payment Institution licence alongside our MiCA CASP authorisation bridges our capabilities across crypto asset safekeeping. With both licences in place, clients have the certainty to manage Electronic Money Tokens and crypto asset strategies across Europe while keeping assets within a bank-grade environment.”

Under EU law, EMTs are treated as electronic money and are subject to payments regulation that differs from the rules for unbacked crypto tokens. The CSSF licence permits regulated custody and transfer of EMTs, aligning Zodia’s services with the legal framework for electronic money in the EU.

Zodia has prepared its infrastructure to support the use of stablecoins for settlement, liquidity management and corporate treasury operations. The Luxembourg licence lets the firm offer custody and payments-related EMT services from a recognised EU financial centre and sit alongside its existing service footprint.