Standard Chartered Launches Bitcoin and Ethereum Custody in UAE, Signaling Growth in Institutional Crypto Demand

B. Ali
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Global banking giant Standard Chartered has taken a significant step into the cryptocurrency sector by launching a digital asset custody service in the United Arab Emirates (UAE). Licensed by the Dubai Financial Services Authority (DFSA), the service will initially focus on two major cryptocurrencies, Bitcoin and Ethereum, offering secure storage solutions for institutional clients. This move highlights the growing demand for regulated and secure digital asset services in the region.

Key Takeaways:

  • Standard Chartered launches Bitcoin and Ethereum custody service in the UAE with the first client, Brevan Howard Digital.
  • Institutional interest in digital assets continues to rise, with secure and regulated custody solutions becoming increasingly important.
  • The bank plans to expand into additional financial centers and offer a broader range of digital assets.

This move highlights how traditional financial institutions are adapting to the growing demand for digital asset services, further integrating cryptocurrencies into mainstream finance.

The service’s first client is Brevan Howard Digital, a division of the hedge fund giant Brevan Howard. This partnership underscores Standard Chartered’s commitment to establishing itself as a leader in the evolving world of digital finance.

Institutional Demand Driving Crypto Custody Growth

The UAE’s supportive regulatory environment for financial innovation played a key role in Standard Chartered’s decision to launch this service. The Dubai International Financial Centre (DIFC), where the DFSA operates, has positioned itself as a hub for global financial activity, particularly in the growing digital asset sector. As Bill Winters, Group Chief Executive of Standard Chartered, pointed out, the launch aligns with the broader trend of institutional interest in digital assets.

“We firmly believe that digital assets are not merely a passing trend but a fundamental shift in the fabric of finance,” Winters emphasized.

Margaret Harwood-Jones, global head of financing and securities services at the bank, also highlighted the critical need for secure, regulated solutions in the digital asset space. She described the custody service as a “game changer” for institutional clients navigating the complexities of this new asset class, adding that the service will extend to more digital assets as the demand grows.

A Broader Move Into Digital Finance

With Brevan Howard Digital as its first client, the service marks an important step in meeting the security, risk management, and regulatory needs of institutions exploring digital assets. Gautam Sharma, CEO of Brevan Howard Digital, remarked that the partnership is crucial for the development of the digital asset markets in the UAE. He praised Standard Chartered’s reputation as a major factor in encouraging institutional adoption of cryptocurrencies.

The bank has indicated its intention to expand the service beyond Bitcoin and Ethereum, as well as into other financial centers globally. Standard Chartered’s strategic move demonstrates the increasing importance of offering regulated and secure solutions as the digital finance landscape continues to evolve. Harwood-Jones stressed that the solution goes beyond mere custody, incorporating prudential norms to provide a robust framework for institutional clients.

 

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Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.