HONG KONG - Solowin Holdings (NASDAQ:SWIN), a Hong Kong-based financial services firm, has announced a strategic partnership with Zodia Custody, a digital asset custodian backed by Standard Chartered (OTC:SCBFF). This collaboration is intended to bolster Hong Kong's digital asset ecosystem by providing secure and compliant custody services for Solowin's clients.
The partnership will see Zodia Custody become one of the custodians for Solowin's clients, offering additional security and bank-grade compliance. Both companies are set to explore further opportunities to leverage their resources and regulatory licensing to cater to the increasing demand for digital asset investments in the region, pending necessary regulatory approvals.
Marco Lim, Web3 Partner at Solowin, highlighted the benefits of the partnership, noting that it will enhance their service offerings and meet client needs with a fully segregated wallet solution. "Zodia Custody provides SOLOWIN with solutions including wallet management, protection and bank-grade compliance, which enables our investors around the globe to realize the full potential of the digital asset future-simply, safely, and without compromise,” said Lim.
Richard Clark, Chief Revenue Officer of Zodia Custody, expressed similar sentiments, emphasizing the shared commitment to innovation and strict regulatory compliance between the two firms, which makes Solowin an ideal partner.
Solowin Holdings offers a range of services including investment banking, wealth management, asset management, and Web3 solutions, catering to high-net-worth and institutional investors. Its subsidiary, Solomon JFZ (Asia) Holdings Limited, is a regulated virtual asset service provider in Hong Kong.
Zodia Custody, led by Standard Chartered and associated with Northern Trust (NASDAQ:NTRS), SBI Holdings, and National Australia Bank (OTC:NABZY), provides institutional investors with digital asset custody solutions. It operates under regulatory compliance with registrations in the UK, Ireland, Luxembourg, and Singapore, and is registered for custodial activities in digital assets in Hong Kong.
The announcement contains forward-looking statements that involve risks and uncertainties. The company's expectations regarding the partnership's impact on its financial condition and operations are based on current projections and are subject to change. Solowin Holdings has stated that it will not update or revise these statements unless required by law. Investors are encouraged to review the company's filings with the SEC for further details on risk factors.
This news article is based on a press release statement from Solowin Holdings.
InvestingPro Insights
As Solowin Holdings (NASDAQ:SWIN) embarks on this strategic partnership with Zodia Custody, investors should be aware of some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Solowin's market capitalization stands at $39.22 million USD, reflecting its current position in the financial services sector. The company's revenue for the last twelve months as of Q4 2023 was $3.44 million USD, with a gross profit margin of 99.56%. This high margin suggests that Solowin's core business operations are potentially efficient, which could be beneficial as it expands its digital asset services through the Zodia Custody partnership.
However, investors should note that Solowin's revenue growth has been negative, with a -22.5% decline over the last twelve months. This trend might be a factor in the company's decision to pursue strategic partnerships to bolster its service offerings and potentially drive future growth.
InvestingPro Tips highlight that Solowin's stock has experienced high price volatility and has taken a significant hit over the last six months, with a price total return of -93.57% during that period. This volatility underscores the importance of the company's efforts to strengthen its position in the digital asset space, which could potentially stabilize its market performance.
Another InvestingPro Tip indicates that Solowin's liquid assets exceed its short-term obligations, which could provide the company with financial flexibility as it navigates the expansion of its digital asset services and explores new opportunities with Zodia Custody.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Solowin Holdings, providing a deeper understanding of the company's financial health and market position.
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