StanChart’s Zodia Markets gearing up for stablecoin forex market debut

Zodia Markets’ Nick Philpott anticipates that traditional payment service providers may struggle to keep up with upgraded cross-border payment systems

article-image

tostphoto/Shutterstock modified by Blockworks

share

Standard Chartered’s crypto-focused venture, Zodia Markets, foresees significant growth in cross-border payments for 2023.

In light of this, the crypto asset brokerage intends to roll out a stablecoin-based foreign exchange (forex) market by the end of September.

“We’re seeing larger and larger corporates in more and more developed markets come to us either directly or through Standard Chartered […] and are looking at using stablecoins for cross border payments,” Nick Philpott, co-founder at Zodia Markets, told Blockworks in an interview.

“We’re working with the issuers of a bunch of non-US dollar stablecoins starting with Canadian, Japanese, Singaporean, euro and pound sterling to try to create a stablecoin-based foreign exchange market,” he continued.

This market would operate as a platform for users to exchange one stablecoin for another, similar to traditional forex markets that deal with fiat currencies like USD, EUR and JPY. 

“What we’re going to see is that this market is going to take off and I think a lot of traditional payment service providers are going to be left flat-footed and are going to be left behind,” Philpott said.

Earlier this month, Zodia Markets CEO Usman Ahmad said he views the British pound as a strong choice among non-USD stablecoins.

The firm’s platform has already incorporated USD via Circle and Tether and has plans to integrate Stablecorp (CAD), Circle (EUR), Poundtoken (GBP), GMO-Z (JPY) and StraitsX (SGD). Additional integrations are in progress, according to the firm. 

“In terms of the cross-border payments, I would say that’s already started. We’re just getting on the train,” Philpott said.

While many crypto exchanges and DeFi platforms allow users to trade stablecoins like USDC, USDT or DAI, Zodia Markets’ concept for a stablecoin-based foreign exchange market stands out because of its traditional institutional support.

Philpott, who developed an interest in crypto after witnessing his brother mine bitcoin, contended that Zodia Markets has formed strong partnerships with liquidity providers, and the support of Standard Chartered has boosted its credibility.

“A lot of those liquidity providers are already known to us because they work with Standard Chartered in other asset classes, so that helps, and they see what we’re trying to do,” he said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (6).png

Research

In recent months, a number of highly accretive developments were implemented across the protocol to improve fee capture, expand product functionality, and ultimately drive value accrual to the RUNE token, with more upgrades on the immediate horizon. These developments include hiking the minimum swap fee parameter to increase revenue, adding a Burn System Income Lever to reduce the RUNE supply, the addition of COSM-WASM smart contracting and IBC to enable an application layer, new chain integrations, and more.

article-image

A blockchain some thought dead in the water two years ago now feels cool

article-image

Former IRS agent and Binance executive Tigran Gambaryan will remain imprisoned in Nigeria’s Kuje prison

article-image

When Permissionless III wraps on Friday, there will be 26 days left until the 2024 presidential election

article-image

Plus, an update from the ground in Salt Lake City at Permissionless III

article-image

The US regulator accused the crypto market-making firm of acting as an unregistered dealer