Standard Chartered Launches Digital Asset Custody Services in UAE
Standard Chartered, a leading international banking group, has officially launched its digital asset custody services in the United Arab Emirates (UAE), marking a significant milestone in the bank’s digital asset strategy. This move underscores the growing institutional interest in digital assets and positions Standard Chartered at the forefront of the evolving financial services landscape.
The custody service, which initially supports Bitcoin and Ethereum, has been granted a license by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC). The launch follows a memorandum of understanding signed in May 2023 between Standard Chartered and the DIFC, setting the stage for this innovative offering.
Standard Chartered’s decision to launch in the UAE is strategic, leveraging the country’s well-balanced approach to digital asset adoption and financial regulation. The UAE has been actively working to attract major crypto firms and develop comprehensive virtual asset regulations, positioning itself as a potential global hub for digital finance.
Bill Winters, Group Chief Executive of Standard Chartered Bank, emphasized the significance of this launch, stating, “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business.”
The bank’s digital asset custody service goes beyond simple wallet services, offering a comprehensive solution that addresses the unique challenges of digital asset custody from regulatory, risk, and prudential perspectives. This approach is designed to meet the growing demand for secure, regulated custody solutions in the digital asset space.
Brevan Howard Digital, the crypto and digital asset division of the British hedge fund Brevan Howard, has been announced as the inaugural client for this service. Gautam Sharma, CEO of Brevan Howard Digital, highlighted the importance of this development, noting, “Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption.”
This launch is part of Standard Chartered’s broader strategy to expand its cryptocurrency services. The bank plans to broaden its scope in the coming months to encompass a wider range of digital assets and is exploring opportunities to extend its custody services to other key financial hubs in its footprint markets.
The move aligns with Standard Chartered’s previous initiatives in the crypto space, including the launch of a Bitcoin and Ether trading desk for institutional clients in June 2023. The bank has also engaged in partnerships with Web3 firm Animoca Brands and cryptocurrency exchange Crypto.com, further solidifying its position in the digital asset ecosystem.
Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, emphasized the transformative nature of this offering, stating, “It is a game changer for institutional clients, as we can support them with our traditional expertise to navigate the complexities of the digital asset space, without compromising on the highest standards of security.”
As institutional interest in digital assets continues to grow, Standard Chartered’s launch of custody services in the UAE represents a significant step forward in bridging the gap between traditional finance and the emerging digital asset ecosystem. This development not only enhances the bank’s service offerings but also contributes to the broader adoption and integration of digital assets in the global financial landscape.
