Zodia Custody has partnered with crypto-native compliance and security solutions provider Solidus Labs to bolster the digital asset custodian’s transaction monitoring capabilities, ensuring comprehensive coverage of both onchain and offchain transactions.
Backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, the crypto custodian tapped Solidus Labs to optimize its approach to financial crime risk identification and mitigation.
Strengthening financial crime detection
Solidus Labs’ transaction monitoring solution uses an asset-agnostic architecture that integrates advanced machine learning and behavioral analytics, offering broad coverage of both fiat and digital asset transactions across any blockchain. This provides Zodia Custody with exceptional flexibility, combining onchain and offchain risk signals to detect suspicious activities like fraud, market manipulation, and money laundering, while reducing false positives.
As the digital asset ecosystem continues to innovate, robust financial crime controls are crucial. Firms must seek continuous improvement, even in jurisdictions with established Anti-Money Laundering regulations, and newer frameworks like the EU’s Markets in Crypto-Assets Regulation (MiCA) providing clarity. Zodia Custody’s adoption of Solidus Labs’ solutions, and their partnership, strengthens financial crime detection, supports compliance, and fosters growth for institutional investors.
Solidus Labs’ HALO Transaction Monitoring module gives compliance teams a comprehensive view of customer activity by combining onchain data with traditional offchain monitoring. This real-time risk management adds a strong layer of protection, enhancing Zodia Custody’s reputation as a secure, reliable custodian for institutional investors.
“A risk-based approach to on-chain and off-chain transaction monitoring”
Mike Sadarangani, Group Head of Financial Crime Compliance at Zodia Custody, said: “Financial Crime detection and prevention is the cornerstone of enabling innovation and ensuring that businesses in the digital asset space can thrive by preventing the misuse by illicit actors. It brings clarity and certainty to a constantly evolving environment. Our partnership with Solidus Labs further enhances our risk-based approach to on-chain and off-chain transaction monitoring, keeping us at the forefront of regulatory compliance, and in-line with the standards that institutional investors recognize and trust.”
Asaf Meir, CEO and Founder of Solidus Labs, said: “Zodia Custody’s forward-thinking approach to compliance aligns perfectly with Solidus Labs’ mission to enable safe and secure digital asset trading. Our transaction monitoring modules will empower Zodia to detect anomalies in real-time, ensuring a proactive defense against financial crime across both centralized and decentralized ecosystems. This collaboration solidifies Zodia Custody’s position as a compliance leader in the digital asset space, while further strengthening their institutional offerings.”
