Standard Chartered is making significant strides in the digital asset space with the introduction of a new crypto custody service in the United Arab Emirates (UAE). This development follows the recent licensing granted by the Dubai Financial Services Authority (DFSA) and the signing of a memorandum of understanding in May 2023. The service will initially support Bitcoin and Ethereum, with plans to expand the range of supported cryptocurrencies in the future.
The bank has teamed up with Brevan Howard Digital, a dedicated division of Brevan Howard specialising in crypto and digital assets, to facilitate the launch. Brevan Howard Digital will also be the inaugural client for the new service. This partnership underscores the growing synergy between traditional financial institutions and the digital asset ecosystem.
Bill Winters, group chief executive of Standard Chartered, highlighted the significance of the new service, describing it as a landmark moment for both the bank and the broader financial services sector. Winters expressed a strong belief that digital assets represent more than a fleeting trend, indicating a fundamental transformation in the finance industry. He noted that the new service positions Standard Chartered at the cutting edge of the custody business, leveraging its robust infrastructure and expertise to bridge traditional financial services with the evolving digital asset landscape.
Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, praised the service as a “game changer” for institutional clients. She emphasized that it merges traditional financial expertise with enhanced security standards, designed to help institutions navigate the complexities of the digital asset market. This approach is expected to support institutional adoption and ensure that clients can manage their digital assets with confidence.
Gautam Sharma, CEO of Brevan Howard Digital, also highlighted the impact of this new offering. He noted that Standard Chartered’s reputation and commitment to the digital asset sector add significant credibility, which is crucial for institutional adoption. Sharma also pointed out that the development of institutional infrastructure in the UAE supports the growth of Brevan Howard Digital’s business in the Abu Dhabi Global Market (ADGM) and enhances the overall standards within the digital asset ecosystem.
The launch of this crypto custody service is part of a broader strategy by Standard Chartered to expand its presence in the digital asset space. Earlier in June, the bank announced plans to establish a spot cryptocurrency trading desk in London, integrated into its FX trading unit. This move reflects the bank’s commitment to capitalising on the rising demand for cryptocurrency services, particularly in its key markets across Asia, Africa, and the Middle East.
Standard Chartered’s foray into the crypto sector aligns with a broader trend among financial institutions to integrate digital assets into their service offerings. The recent expansion by Crypto.com, which introduced enhanced fiat deposit and withdrawal options for millions of users through a partnership with Standard Chartered, is a testament to the growing synergy between traditional banking and the digital asset world.
As the financial industry continues to evolve, Standard Chartered’s new crypto custody service represents a significant step towards integrating digital assets into mainstream financial practices. By leveraging its established infrastructure and expertise, the bank is not only expanding its service offerings but also contributing to the maturation of the digital asset industry.
