Zodia Custody, an institution-first digital asset custodian backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, has partnered with quantitative digital asset technology firm with Algoz in a bid to deliver a safer model for digital asset investing.

This model for digital asset investment relies on Algoz Quant Pro, an investment vehicle launched in 2023 in response to increasing instances of illegally commingled funds in the industry. According to a press statement, the launch of the partnership is driven by "the firms’ mutual commitment to protecting investor funds from counterparty insolvency, and promoting best practices in security, efficiency and regulatory compliance".

Through the partnership, Algoz managers will be able to trade the collateral value of investor holdings without taking control of investor assets directly. Algoz will also be able to offer off-venue settlement as a result of the partnership with Zodia.

In addition, clients will be able to store funds in Zodia Custody’s segregated cold storage wallets, which ensures assets are not co-mingled.

In contrast to standard digital asset custody services, funds held in Zodia Custody wallets can be withdrawn without a lock-in period.