Zodia Custody Exit From SBI JV Could Reflect Shifting Outlook for Bitcoin Custody in Japan





  • Zodia Custody dissolved SBI Zodia Custody after two years as a mutual strategic realignment.

  • SBI retains a focus on broader digital ecosystem synergies; Zodia shifts resources to other jurisdictions.

  • Venture ended before submitting a formal FSA registration; Zodia recently expanded by acquiring Tungsten Custody Solutions in the UAE.

Zodia Custody exit Japan joint venture with SBI Holdings — strategic realignment confirmed; regulatory filing not submitted. Read the implications for institutional custody in Japan.

What is the Zodia Custody exit from Japan?

Zodia Custody exit from Japan refers to the dissolution of the SBI Zodia Custody joint venture, a 51/49 partnership between SBI Holdings and Zodia Custody. Both parties described the move as a strategic realignment made before any formal Financial Services Agency registration had been filed.

Why did Zodia Custody and SBI dissolve their joint venture?

Both firms said the split was mutual and driven by different strategic priorities. Julian Sawyer, CEO at Zodia Custody, stated the decision reflected divergent focus areas rather than regulatory failure. SBI framed the move as a proactive step to accelerate group‑wide synergies across its digital ecosystem.

Discussions with Japan’s Financial Services Agency (FSA) had occurred, but no formal application for local registration was submitted. Zodia has since redirected efforts to other markets, including the acquisition of Tungsten Custody Solutions in the UAE.

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The failed SBI Zodia Custody project. Source: SBI Zodia Custody website

Frequently Asked Questions

Did the venture seek FSA approval?

Conversations with the Financial Services Agency took place, but no application was formally lodged. Julian Sawyer said Zodia and SBI were “working and preparing for an application,” yet the dissolution preceded any submission.

What does this mean for institutional custody in Japan?

Japan remains a cautious regulatory environment. Market participants cite FSA and JVCEA-style pre-approval models and a conservative sandbox approach as barriers to faster innovation and onshore liquidity growth.

Key Takeaways

  • Strategic realignment: Zodia Custody and SBI dissolved the JV by mutual decision to pursue different priorities and faster group synergies.
  • Regulatory status: No formal FSA registration was filed before the exit; discussions had occurred but remained at the preparation stage.
  • Market impact: The move highlights Japan’s cautious approval culture and may encourage custodians to seek more permissive regulatory environments.

Conclusion

The dissolution of SBI Zodia Custody highlights persistent regulatory and strategic hurdles for institutional custodians in Japan. Zodia Custody has shifted investment to other regions while SBI Holdings pursues accelerated group synergies. Watch for further moves as firms balance regulatory compliance with market expansion.

Author: COINOTAG — Published: 2025-09-11 — Updated: 2025-09-11

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