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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Why Trust Cryptonews
Standard Chartered announced on September 10 the launch of its digital asset/crypto custody services in the United Arab Emirates.
The service was licensed by the Dubai Financial Services Authority (DFSA) and operates within the Dubai International Financial Centre (DIFC). It will initially support Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization.
UAE’s recognition for its balanced approach to digital asset adoption and regulation has been reflected in its growing status as a global leader in digital finance, with opinions of it becoming the center of crypto in the coming years.
Standard Chartered’s Crypto Custody Initiative
The announcement on September 10 marks a significant milestone for Standard Chartered. This move follows a memorandum of understanding signed in May 2023 between the bank and DIFC, laying the groundwork for the custody service.
Brevan Howard Digital, the cryptocurrency division of the hedge fund Brevan Howard, has been named the first client of the new service.
The UAE was chosen as the launchpad due to its proactive stance on digital finance, including favorable regulatory conditions.
According to Standard Chartered, the service will provide institutional clients with a secure solution to keep their digital assets safe and address the increasing demand for regulated custody solutions in the region.
Expanding Services: UAE’s Role in Digital Finance
Standard Chartered’s foray into digital asset custody is part of a broader strategy to expand its cryptocurrency services.
The bank plans to widen the scope of its custody offerings in the coming months, potentially including a broader range of digital assets and extending these services to other key financial markets.
This aligns with the bank’s earlier initiatives, such as the launch of a Bitcoin and Ether trading desk for institutional clients in June 2023.
The UAE’s selection as the starting point for this initiative shows its leadership in digital asset adoption.
In the Henley Crypto Adoption Index 2024, the UAE ranks third globally, just behind Singapore and Hong Kong. This ranking is attributed to high scores in economic factors, innovation, and technology.
This environment has made the UAE an attractive hub for financial institutions looking to establish a foothold in the space.
The launch of the custody service follows other strategic moves by Standard Chartered in the crypto space, including partnerships with Web3 firm Animoca Brands and Crypto.com. These partnerships seek to enhance the bank’s digital asset offerings and expand its influence 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 services in over 90 countries, starting with the UAE.
Standard Chartered’s digital asset custody service represents a growing institutional interest in crypto and recognizes the critical need for secure and regulated solutions.
