The venture arm of National Australia Bank, NAB Ventures, has invested in Zodia Custody, an institution-grade cryptocurrency and digital assets safekeeping platform which is also backed by Standard Chartered, Northern Trust and SBI Holdings.

The investment from NAB Ventures underpins Zodia’s push into Australia, where the custody firm established operations in late 2023, according to a press release. The size of the investment was not disclosed.

Banks and other financial institutions have warmed to the idea of cryptocurrency custody, usually opting for some third party to manage cryptographic keys and explore use cases around trading, tokenization and so on.

“NAB Ventures’ investment in Zodia was based on a range of factors including their innovative approach, institution-grade safety and strong work with regulators,” said NAB Ventures MD Amanda Angelini in a statement.

Following the investment, key immediate priorities include onboarding Australia’s unique ecosystem of home-grown digital asset exchanges, many of whom are moving assets onto the Zodia Custody platform in preparation for stricter regulatory requirements expected to come into effect in 2025, Zodia said.

Zodia Custody is also priming itself as the custodian of choice for applicants of anticipated digital asset ETFs awaiting approval from the ASX, the custody firm added.