Zodia Custody and SBI Dissolve Japan JV, Pivot to UAE
Zodia Custody and SBI Holdings have agreed to dissolve their two-year-old Japan joint venture, SBI Zodia Custody, which had been planned to provide institutional-grade digital asset custody services under a 51:49 ownership structure. Regulatory filings with Japan’s Financial Services Agency under the JVCEA model were never submitted, as both firms chose a strategic realignment to accelerate group-wide synergies. SBI has denied reports of a planned Bitcoin and XRP ETF, citing persistent regulatory uncertainty. Meanwhile, Zodia Custody is refocusing on overseas markets with clear licensing frameworks, acquiring Tungsten Custody Solutions in the UAE. The split underscores the challenges posed by Japan’s rigorous FSA and JVCEA pre-approval processes, which industry observers now identify as the primary bottleneck for crypto custody providers, overshadowing tax considerations. Firms increasingly seek jurisdictions with predictable licensing pathways to support digital asset custody and institutional crypto custody solutions.
Neutral
The dissolution of the Japan JV and pivot to the UAE is primarily a corporate strategy move, not directly tied to market-moving events or specific token fundamentals. While it highlights regulatory hurdles in Japan and may influence long-term custody service distribution, there is no clear catalyst for immediate price shifts in cryptocurrencies. Thus, the news is expected to have a neutral impact on trading activity and market stability.