Jiuzi Holdings Inc. (JZXN) is pivoting into cryptocurrency custody in a big way. The company announced Monday it's teaming up with EXSAT.NETWORK LTD, a core organization within the EOS blockchain ecosystem, to build out an institutional-grade digital asset custody business targeting up to $3 billion in scale.
It's quite the strategic shift for a company that started in new energy vehicles. The partnership marks Jiuzi's official entry into the global digital asset custody arena, and management clearly sees this as riding the wave of crypto's ongoing institutionalization.
What They're Actually Building
The two companies plan to construct a comprehensive business and technical framework focused on cryptocurrency custody and depository services. Think institutional infrastructure, not your cousin's hardware wallet.
The roadmap includes designing a $3 billion-scale custody platform, establishing compliance and operational standards that meet institutional requirements, and developing secure custody technology. EXSAT.NETWORK brings blockchain expertise to the table, including high-performance infrastructure, wallet technology, and security architecture from the EOS ecosystem.
The technical features sound robust: multi-signature authorization, distributed custody systems, and on-chain transparent auditing. Beyond basic custody, they're also eyeing value-added services like yield management, clearing and settlement functions, and financial products built around the assets they're safeguarding.
Big Ambitions, Mixed Market Response
Jiuzi's management is clearly enthusiastic, calling the agreement a "qualitative leap" in their strategy across new energy, fintech, and digital assets. They highlighted that "by partnering directly with the core ecosystem organization of the EOS to co-build infrastructure for a $3 billion USD-level cryptocurrency depository business, we significantly enhance our global perspective and industry position."
Management said they're "extremely optimistic" about the company's trajectory over the next three to five years. EXSAT.NETWORK, for its part, emphasized the strategic fit with Jiuzi's Nasdaq listing and compliance orientation.
Industry watchers note that tighter integration with the EOS ecosystem could boost Jiuzi's profile as demand for regulated, institutional custody solutions grows. That could matter for how investors view JZXN longer-term.
The market's immediate reaction? Not great. Jiuzi Holdings shares dropped 13.13% to $1.65 on Monday, hitting a fresh 52-week low. Sometimes big strategic pivots take time to convince investors, especially when you're moving from electric vehicles into multi-billion dollar crypto infrastructure.