- Standard Chartered launches licensed crypto custody service in the UAE, offering secure storage for Bitcoin and Ethereum.
- Brevan Howard Digital becomes the first client of Standard Chartered’s new digital asset custody service, highlighting institutional demand.
- Standard Chartered plans to expand its digital asset custody services to other global hubs, broadening its cryptocurrency offerings.
Standard Chartered has officially introduced a digital asset custody service in the UAE. Licensed by the Dubai Financial Services Authority (DFSA) under the Dubai International Financial Centre (DIFC), the service is a key development in the bank’s digital asset strategy.
It aims to provide institutional clients with secure storage for Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. This launch comes after a memorandum of understanding was signed in May 2023.
Institutional Focus and Secure Custody Solutions
The service is designed to meet the growing demand for regulated digital asset custody, especially among institutional clients. Notably, Brevan Howard Digital, a specialized division of Brevan Howard, has been named as the inaugural client. The partnership highlights increasing institutional interest in digital assets and reflects the critical need for secure custody solutions that comply with global regulatory standards.
According to Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, the service offers much more than basic wallet solutions. It addresses the complex challenges of digital asset custody, focusing on regulatory, risk, and prudential aspects. This move highlights the bank’s efforts to navigate the emerging digital asset space while maintaining its expertise in traditional finance.
Strategic Positioning in the UAE
Standard Chartered selected the UAE for this launch due to its balanced approach to digital asset regulation and adoption. The region’s regulatory framework supports the safe development of digital asset services, making it a key hub for financial innovation.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized that this initiative represents a broader shift in finance, where digital assets are becoming a fundamental part of the financial ecosystem.
Plans for Expansion and Future Growth
In the coming months, Standard Chartered plans to broaden its custody services to include a wider range of digital assets. Additionally, the bank is exploring opportunities to extend these services to other financial hubs within its global footprint. This move is expected to position Standard Chartered as a key player in the digital asset custody space, enabling clients to securely manage their assets.
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