Standard Chartered Adds Crypto Custody to UAE Services with BTC and ETH Support
Date: 2024-09-11 Author: Oliver Abernathy Categories: BUSINESS
On September 10, Standard Chartered announced the launch of digital asset/crypto custody services in the United Arab Emirates.
The service is licensed by the Dubai Financial Services Authority (DFSA) and operates within the Dubai International Financial Centre (DIFC). Initially, Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, are supported.
The UAE’s recognition for its balanced approach to digital asset adoption and regulation is reflected in its growing status as a global leader in digital finance. It is expected that the UAE could become a hub for the cryptocurrency industry in the coming years.
Standard Chartered’s Crypto Custody Initiative
The September 10 announcement marks a major milestone for Standard Chartered. The move follows a memorandum of understanding signed in May 2023 between the bank and the DIFC, which laid the foundation for the custody service.
Brevan Howard Digital, the cryptocurrency arm of hedge fund Brevan Howard, was the first client of the new service.
The UAE was chosen for the launch due to its proactive stance towards digital finance, including its favourable regulatory environment.
According to Standard Chartered, the service will provide institutional clients with a secure digital asset custody solution and will meet the growing demand for regulated custody solutions in the region.
Expanding services: The role of the UAE in digital finance
Standard Chartered’s entry into the digital asset custody market is part of a wider strategy to expand its cryptocurrency services.
The bank plans to expand its custody offering in the coming months, potentially to include a wider range of digital assets and extending its services to other key financial markets.
This is in line with the bank’s previous initiatives, such as the launch of a Bitcoin and Ethereum trading platform for institutional clients in June 2023.
The choice of the UAE as a starting point for this initiative highlights its leadership in digital asset adoption.
The UAE ranks third globally in the Henley Cryptocurrency Adoption Index 2024, behind only Singapore and Hong Kong. This ranking is driven by strong performance in economics, innovation, and technology.
This environment makes the UAE an attractive hub for financial institutions looking to establish a foothold in this space.
The launch of the custody service follows other strategic moves by Standard Chartered in the crypto space, including partnerships with Web3 company Animoca Brands and Crypto.com. These partnerships are aimed at enhancing the bank’s digital asset offering and expanding its footprint in the sector.
In July 2023, the bank joined the Hong Kong Monetary Authority’s stablecoin issuer sandbox. In August, it partnered with Crypto.com to provide fiat currency services in over 90 countries, starting with the UAE.
Standard Chartered's digital asset custody service reflects growing institutional interest in cryptocurrencies and recognition of the need for secure and regulated solutions.
