In a blog announcement on Tuesday, Zodia Custody announced that it will provide custody services for 21Shares’ physically backed ETPs in Switzerland and the wider European market. This statement is considered as a step taken in response to the rapid increase in ETP demand.

Mandy Chiu, head of financial product development at 21Shares, says this collaboration strengthens their commitment to providing “world-class investment opportunities.” Emphasizing that the “cold storage infrastructure and fluid compliance solutions” offered by Zodia play a critical role at this point, Chiu draws attention to the importance of increasing the confidence of investors.

Interestingly, 21Shares’ website shows that it also works with other custody providers besides Zodia. These providers include Coinbase Custody and Copper, another British crypto custody company founded in 2018. It is not yet clear whether 21Shares currently uses these three companies or whether the agreement with Zodia terminates other partnerships. Crypto.news contacted 21Shares for clarification on this matter but has not yet received a response.

This new partnership comes on the heels of a significant development for Zodia Custody. Last week, NAB Ventures, the venture capital fund of National Australia Bank (NAB), one of Australia’s largest financial institutions, announced that it has invested in Zodia Custody. Although the investment amount was not disclosed, NAB Ventures official Amanda Angelini stated that Zodia’s features such as its innovative approaches, high-level security and strong cooperation with regulators were effective in the investment decision.

Founded by Standard Chartered together with Northern Trust in 2020, Zodia Custody has raised a total of $44 million from five different investors to date. These investments and newly formed partnerships support Zodia Custody’s goal of becoming a trusted and significant player in the crypto custody industry.

This collaboration with 21Shares shows that crypto ETPs are gaining increasing traction among traditional investors. Physically backed ETPs offer investors an experience similar to investing in gold. In this way, it becomes an attractive option for investors who want to invest in cryptocurrencies but are accustomed to traditional financial markets.

Reliable storage solutions such as Zodia Custody are one of the most important needs in this field. Safe custody of investors’ cryptocurrencies plays a critical role in the adoption and future growth of crypto ETPs.

The traditional financial sector is also recognizing the potential in the cryptocurrency market, as evidenced by investment from Australia. This could pave the way for more collaboration and investment in the future. In short, the partnership between Zodia Custody and 21Shares can be considered a positive development for the future of crypto ETPs and the cryptocurrency market more broadly.