XBTO, a global leader in institutional digital asset management, has joined forces with Zodia Custody, the institutional custodian backed by Standard Chartered Ventures, to introduce a first-of-its-kind solution that combines regulated Bitcoin custody with yield-generation strategies.
Through this partnership, XBTO’s Diamond Hands BTC SMA clients will benefit from Zodia Custody’s regulated, institutional-grade custody and collateral mirroring capabilities. At the same time, Zodia Custody’s clients will gain access to XBTO’s proven Diamond Hands BTC strategy, giving them a way to generate compliant, in-kind yield on their Bitcoin holdings while minimizing counterparty risk.
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The launch is strategically focused on key global financial hubs, where institutional demand for Bitcoin is rapidly accelerating. With 86% of institutional investors now exploring or already holding digital assets, Bitcoin is evolving from a static reserve asset to a yield-generating instrument. This trend is reinforced by the growing number of Bitcoin treasury companies—more than 125 public firms now hold BTC on their balance sheets, joining early pioneers who recognized its long-term value.
“When it comes to digital assets, institutions are really looking for two things: safety and results,” said Karl Naïm, Group Chief Commercial Officer at XBTO. “By partnering with Zodia Custody, our clients get the peace of mind that comes with a regulated custodian backed by one of the world’s top banks. By combining that with our Diamond Hands BTC strategy, we’re transforming Bitcoin from a passive reserve into an asset that can work harder for institutions without compromising on safety.”
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XBTO’s Diamond Hands BTC SMA strategy is designed to harvest volatility through an options-based approach, targeting annual in-kind returns of 5–8% in BTC with a controlled risk profile. For institutions, this represents a regulated, transparent way to enhance their Bitcoin positions while maintaining the high standards of traditional finance.
Dominic Longman, Global Head of Markets at Zodia Custody, added: “At Zodia Custody, we believe digital assets must meet the same standards as traditional finance to be trusted. Partnering with XBTO allows us to extend that principle to yield generation, giving clients a secure and sustainable way to grow their Bitcoin.”
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Together, XBTO and Zodia Custody are setting a new benchmark for institutional digital asset solutions by uniting custody and yield in a fully compliant structure. Both firms also plan to expand the offering to Ethereum, reflecting growing demand for ETH Treasury strategies among corporates and institutions.
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