Zodia Custody, a bank-backed digital asset custodian, has expanded its operations to Luxembourg as part of its ongoing efforts to capture the growing interest in digital assets from institutional investors across Europe. The move was officially on 3 December 2024, with the firm emphasising its commitment to the region ahead of the full implementation of the European Union’s markets in crypto-assets regulation (Mica).
The Luxembourg expansion marks a strategic step for Zodia Custody, which has already established a significant presence in Ireland and the United Kingdom. Luxembourg becomes the custodian’s seventh global market, following earlier entries in Australia, Singapore, Hong Kong and Japan. The new entity is designed to support institutions and digital asset partners across mainland Europe, as well as to ensure compliance with forthcoming regulations under Mica, which is expected to reshape the regulatory landscape for digital assets in the EU.
Paul de Ruiter, chief compliance officer Europe at Zodia Custody, noted in the announcement that Luxembourg’s growing digital asset ecosystem, which has established a solid reputation internationally, makes it an ideal location for the firm’s expansion. He added, “As digital assets move from an alternative asset class and into the mainstream, we will be at the very centre of the region’s blockchain innovation ecosystem, ensuring every institution in Luxembourg and across Europe can access best-in-class, secure and compliant solutions that maximise the opportunities digital assets offer.”
Zodia Custody’s decision to launch in Luxembourg is particularly timely, coming as the Mica regulation is set to be . The regulation, which will provide a clear and comprehensive framework for crypto-assets, is to have a transformative effect on the digital asset market in Europe. The custodian anticipates that the Mica framework will create a more secure and well-structured environment for the sector, positioning Europe as a global leader in digital asset regulation.
Moreover, Luxembourg is taking a proactive stance in shaping its regulatory approach to digital assets. The country has proposed various measures aimed at making the regime more flexible and efficient, which Zodia Custody believes will further bolster the growth of the digital asset industry in both Luxembourg and the wider European market.
Julian Sawyer, CEO of Zodia Custody, stated that Luxembourg “boasts one of the most forward-thinking approaches to digital asset regulation, creating a positive environment for us to thrive in. Combined with a strong talent pool, the grand duchy promises to be a key geography for our own growth--ensuring we can provide institutions on mainland Europe and beyond with access to the best possible solutions and services.”
Zodia Custody’s Luxembourg entity is already registered with the Financial Sector Supervisory Commission (CSSF) as a virtual asset service provider (Vasp), which allows it to offer virtual asset services to financial institutions within the country. The firm is also in the process of securing authorisation under the new Mica regulatory regime, which will enable it to operate in full compliance with the EU’s updated legal framework for digital assets.