Zodia Custody Introduces Zodia Rewards: A Programme to Encourage Institutional Stablecoin Holdings with Native Token Incentives and Waived Custody Fees.

Zodia Custody launches Zodia Rewards to incentivize institutional stablecoin holdings. The program offers up to 500 basis points in monthly discretionary rewards to clients maintaining qualifying balances, waives interchange settlement custody fees for supported assets, and allows clients to use eligible tokens for collateralization and borrowing opportunities. The platform supports four assets: Circle's USDC, Ethena's USDe, USDtb, and the Global Dollar Network's USDG.

Zodia Custody has unveiled Zodia Rewards, a new program designed to incentivize institutional clients to hold stablecoins. This initiative offers up to 500 basis points in monthly discretionary rewards to clients maintaining qualifying balances, effectively eliminating custody fees for supported assets. The program integrates seamlessly with Zodia Custody's existing settlement and collateral solutions.

Backed by major financial institutions such as Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD, Zodia Custody aims to address the growing interest in stablecoin utility among institutions. The firm notes that current custody structures often discourage stablecoin usage by applying fees to idle balances. Zodia Rewards removes these disincentives, allowing stablecoins to be utilized more efficiently.

Under the new initiative, clients who maintain qualifying balances will receive up to 500 basis points in monthly rewards. Eligibility is based on the value of assets held and requires a monthly minimum balance. Additionally, interchange settlement custody fees are waived for supported assets. Clients can also use eligible tokens for collateralization for off-venue settlement via Zodia’s Interchange network or through select borrowing opportunities, without affecting their ability to earn monthly rewards.

The platform initially supports four assets: Circle's USDC, Ethena’s USDe, USDtb, and the Global Dollar Network’s USDG. While USDC is not eligible for collateral usage, it still qualifies for waived custody fees and reward payouts. Reward payouts will be distributed directly to clients in the native token held, reinforcing the liquidity and usability of the assets.

Anoosh Arevshatian, Chief Product Officer at Zodia Custody, commented, “Stablecoins are being adopted far beyond crypto capital markets, emerging as a tool to complement traditional financial rails for cross-border payments. We see this value, and as a custodian, we want to play our part to help unlock further capital efficiencies. We believe that in addition to their use in cross-border payments, there are further use cases for stablecoins as a means of collateral for borrowing and trading purposes, as well as for treasury operations. Our new Zodia Rewards programme directly enables this by removing the barriers – waiving custody fees on eligible tokens and incentivising clients to utilise them as intended: moving, holding, and deploying capital at scale. We’re creating a robust flywheel of use cases with an incentive structure that empowers institutions to manage liquidity more efficiently, all while maintaining a high level of security.”

Zodia Custody said the programme reflects a shift from passive digital asset storage toward capital-efficient infrastructure. Unlike traditional custody models, which charge for token safekeeping without enabling further utility, Zodia Rewards brings yield-generating features into a regulated, bank-backed environment. All reward allocations remain discretionary, and there is no contractual right to receive rewards. The firm may amend or withdraw the programme at any time.

Zodia Custody is registered in the UK, Ireland, Luxembourg, and Hong Kong, and adheres to anti-money laundering and compliance standards in each jurisdiction.

References:
[1] https://financefeeds.com/zodia-custody-unveils-zodia-rewards-to-incentivize-institutional-stablecoin-holdings/
[2] https://coinmarketcap.com/academy/article/ripple-news-stablecoin-market-could-reach-dollar2-trillion-within-handful-of-years-says-ripple-ceo