In a bold move, British multinational bank Standard Chartered has announced plans to launch a trading desk for Bitcoin and Ether. This development marks a significant step for the bank as it becomes one of the first global banks to venture into spot cryptocurrency trading.
Expansion into Digital Assets
Standard Chartered has been actively engaging with players in the digital asset space and has already partnered with several entities to meet the growing demand for crypto exposure. The bank’s new crypto desk, as reported by Bloomberg, is nearly operational and will be integrated into its FX trading unit, with London as its base.
While the bank is yet to officially confirm the launch of its crypto desk, it has acknowledged the increasing demand for Bitcoin and Ethereum among its institutional clients. Standard Chartered highlighted its efforts to work closely with regulators to support its clients’ interest in trading these digital assets.
In addition to launching its crypto desk, Standard Chartered has made strategic investments in the digital assets sector. The bank holds stakes in Zodia Custody and Zodia Markets, two cryptocurrency firms offering services such as custody and over-the-counter trading. Furthermore, Standard Chartered partnered with Coinbase for a strategic banking collaboration for users in Singapore.
Last year, the bank introduced “Libeara,” a blockchain division aimed at assisting institutional players in tokenizing traditional assets. The division’s focus is on developing a tokenized government bond fund denominated in the Singaporean dollar, showcasing the bank’s commitment to embracing digital assets.
Standard Chartered has expressed its belief that digital assets will play a crucial role in the future of financial services. The bank has shown optimism towards stablecoins and has been bullish in its price forecasts for Bitcoin. In fact, Standard Chartered predicts that Bitcoin could reach $250,000 by 2025 if spot ETF inflows reach the expected level of $75 billion.
Overall, Standard Chartered’s foray into the cryptocurrency world signals a growing acceptance of digital assets among traditional financial institutions. With its strategic investments and commitment to innovation, the bank is poised to become a key player in the evolving landscape of cryptocurrency trading.
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