LondonㅡZodia Custody said it is working with PwC UK to provide digital asset custody services in insolvency cases involving cryptocurrencies and other digital assets.
Under the arrangement, Zodia Custody will act as custodian for relevant PwC UK insolvency matters, as the accounting and advisory firm responds to a growing need for specialist handling of digital assets during corporate distress and restructuring proceedings.
The agreement reflects a broader issue facing insolvency practitioners as digital assets appear more frequently on company balance sheets. Unlike traditional assets, cryptocurrencies require specialized custody, technical controls and rapid intervention to reduce the risk of loss, unauthorized access or operational disruption during insolvency proceedings.
Zodia Custody said its role will be to provide regulated custody infrastructure for digital assets involved in those cases. PwC UK said the arrangement is intended to give insolvency practitioners access to institutional-grade custody capabilities when appointed over entities holding crypto assets.
Julian Sawyer, chief executive of Zodia Custody, said the partnership is aimed at bringing more formal custody arrangements into insolvency processes involving digital assets. David Baxendale, a UK insolvency practitioner at PwC UK, said digital assets present distinct challenges because they operate on decentralized networks and can be difficult to secure without specialist expertise.
Zodia Custody said the collaboration will draw on its regulatory standing and custody infrastructure to support the handling of digital assets in PwC UK insolvency cases.
