TL;DR
- Standard Chartered’s Crypto Trading Desk: The bank is launching a spot trading operation for Bitcoin and Ethereum, marking a significant move towards institutional adoption of digital assets.
- Regulatory Collaboration: Despite regulatory challenges, Standard Chartered is working with regulators to meet institutional demand for direct trading in cryptocurrencies.
- Expanding Digital Asset Services: The bank supports crypto firms and has introduced a blockchain division, showcasing its commitment to the digital asset ecosystem and innovation in financial services.
Standard Chartered, a British banking giant, is making waves in the financial industry by announcing the launch of its spot trading operations specifically for Bitcoin (BTC) and Ethereum (ETH).
According to a recent report by Bloomberg, the move positions Standard Chartered as one of the first major banks to establish a spot crypto trading desk, signaling wider institutional adoption of digital assets.
Standard Chartered’s FX trading division in London is gearing up to handle spot trades for BTC and ETH, adding to their already impressive range of digital asset services. With their expertise in crypto custody and OTC trading, this expansion is set to further strengthen their position in the market.
Regulatory Challenges and Institutional Demand
While some banks, like Goldman Sachs Group, have ventured into crypto derivatives, direct dealing in digital assets has been limited due to stringent regulations. The Basel Committee on Banking Supervision’s proposed rules, which require a high-risk weighting for crypto exposure, have made profitability challenging.
Standard Chartered is actively collaborating with regulators to address concerns and meet the growing demand from institutional clients who want to trade Bitcoin and Ethereum.
A representative from the bank stated:
“We have been working closely with our regulators to support demand from our institutional clients, in line with our strategy to provide comprehensive services across the wider digital asset ecosystem—from access and custody to tokenization and interoperability.”
A Pioneering Move
Standard Chartered’s entry into the spot crypto trading segment reflects the increasing acceptance of digital assets within traditional financial institutions. By establishing this trading desk, the bank is paving the way for other conventional entities to engage with the thriving digital asset market.
Standard Chartered’s Crypto Trading Ecosystem
Beyond the trading desk, Standard Chartered has already made significant strides in the crypto space. The bank backs two crypto firms: Zodia Custody and Zodia Markets. These firms offer a range of services, including custody solutions and OTC trading for institutional clients.
Moreover, in November, SC Ventures, the investment arm of Standard Chartered, introduced its blockchain division called Libeara. Libeara has made a significant impact in the fintech industry, especially as a finalist in the Global Retail Central Bank Digital Currency (CBDC) Challenge organized by the Monetary Authority of Singapore (MAS).
The company has also implemented digital platform prototypes used by governments in Hong Kong, Ghana, and the Philippines. Libeara’s commitment to innovation extends to facilitating the tokenization of traditional assets. Notably, it has created a tokenized government bond fund denominated in Singaporean dollars (SGD).
Standard Chartered’s pioneering move into spot crypto trading underscores the evolving landscape of financial services, where digital assets are gaining prominence. As other banks observe this development, we may witness further institutional involvement in the crypto market, ultimately shaping the future of finance.
