Zodia Custody ended its joint venture with SBI Holdings after two years. The venture operated as SBI Zodia Custody. It targeted institutional digital asset custody in Japan.
Ownership stood at 51 percent for SBI and 49 percent for Zodia Custody. Company materials framed the service as institutional grade. The website described replication of traditional custody standards.
Julian Sawyer, CEO of Zodia Custody, told Bloomberg the decision was mutual.
“This is a strategic alignment between SBI and ourselves,”
he said.
“We have other priorities and they have other priorities.”
FSA registration and JVCEA model in Japan
Zodia Custody held talks with the Financial Services Agency in Japan. However, it filed no formal application. Teams were preparing documents when the exit decision came.
Therefore the dissolution arrived before any FSA review. No licensing process began for SBI Zodia Custody. No application remains pending with the regulator.
This sequence fits Japan’s JVCEA pre approval model. Firms often consult early, then decide on timing. Here the venture stopped short of registration.
SBI Holdings response and ETF reports
SBI Holdings said the exit does not indicate a step back. Spokesperson Kosuke Kitamura told Bloomberg it is “not a retreat.” He called it a proactive move for faster group synergies.
Last month, reports said SBI planned a dual asset cryptocurrency ETF. It would have offered exposure to Bitcoin and XRP. The firm later denied those reports.
Price markers in that coverage showed Bitcoin at 113,947 dollars and XRP at 2.99 dollars. Those figures appeared alongside the ETF claim. SBI did not confirm any listing timeline.
Zodia Custody expansion in UAE with Tungsten Custody Solutions
While leaving Japan, Zodia Custody continued to expand elsewhere. The company acquired Tungsten Custody Solutions in the UAE. Management pointed to jurisdictions with clearer routes for digital asset custody.
The UAE has drawn multiple custody and exchange firms. Companies cite purpose built licensing frameworks. Zodia Custody added local capability through the acquisition.
The firm keeps building outside Japan. Operations now emphasize markets with defined rules. The expansion runs in parallel with the Japan exit.
Japan crypto regulation and tax context
Japan remains a cautious venue for foreign crypto firms. Approval steps are detailed and prescriptive. The process often involves the FSA and the JVCEA.
In July, Maksym Sakharov, co founder and CEO of WeFi, described the bottlenecks. He said taxes are not the main blocker. He pointed instead to the approval culture.
“The 55 percent progressive tax is painful and very visible,”
Sakharov said.
“But it is not the core blocker anymore.”
He referenced a 20 percent flat tax proposal that remains under discussion.