Cryptocurrency storage provider Zodia Custody is forming a joint venture with Japanese financial services firm SBI Holdings's crypto arm to set up a crypto asset custodian for institutional investors, the two firms announced on Thursday.

Zodia Custody, which is backed by Standard Chartered and Northern Trust, and SBI Digital Asset Holdings (SBI DAH) are aiming to appeal to institutions interested in crypto investment and adoption but put off by a lack of custodial services that meet the grade of provider in the traditional finance (TradFi) industry.

The venture, ownership of which will be split 51%-49% in SBI DAH's favor, is subject to anti-trust and foreign direct investment clearances, as well as licenses from the Japanese regulator, the Financial Services Agency.