Major Bank Standard Chartered Getting Ready to Launch a Crypto Trading Desk: Bloomberg

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As a researcher with a background in finance and a keen interest in emerging markets, I find Standard Chartered’s entry into the Bitcoin and Ethereum trading market an intriguing development. With its unique focus on emerging markets and strong presence in regions like Asia, Africa, and the Middle East, this move positions Standard Chartered as a pioneer among global banks in directly dealing with cryptocurrencies.

This morning, it was announced by Bloomberg that Standard Chartered Plc is close to establishing a trading desk specifically for Bitcoin and Ether.

Standard Chartered is a prominent international banking conglomerate, distinguished for its concentration on expanding markets in Asia, Africa, and the Middle East. Established in 1969 through the merger of Standard Bank and Chartered Bank, this organization has firmly rooted itself in areas exhibiting considerable growth opportunities. In contrast to numerous Western banking institutions, Standard Chartered maintains a relatively modest presence in Europe and North America, reflecting its strategic priority on dynamic emerging economies.

Based in London, Standard Chartered Bank operates a global network of over 1,000 branches and offices spanning over 60 countries. They offer various services such as personal and corporate banking, wealth management, and trade finance. The bank is renowned for its proficiency in trade finance, cash management, and foreign exchange, which are essential for businesses conducting international transactions.

Based on Bloomberg’s report, Standard Chartered is set to become one of the trailblazing global banks entering the cryptocurrency spot trading market. According to the sources who spoke to Bloomberg anonymously due to the confidential nature of the information, the new crypto trading desk is expected to start operations very soon. The report adds that this forward-thinking trading unit will be part of Standard Chartered’s existing foreign exchange trading division, with its core activities based in London.

According to Bloomberg, Goldman Sachs and other banks have engaged in cryptocurrency derivatives trading for some time. However, due to strict regulations, these financial institutions have not been able to invest directly in the actual crypto assets. Bloomberg highlights that the Basel Committee on Banking Supervision’s proposed high risk weighting of 1,250% for uncovered crypto exposure has made it difficult for banks to earn profits in this sector.

In reaction to these recent events, Bloomberg shares a comment from Standard Chartered expressing their dedication to collaborating with regulators to cater to their institutional clients’ requests for Bitcoin and Ethereum trading. According to the news agency, this decision aligns with the bank’s broader objective of assisting clients in various aspects of the digital asset sector, including access, custody, tokenization, and interoperability.

As a crypto investor, I’m excited to see Bloomberg’s recent coverage of Standard Chartered’s growing presence in our sector. The article emphasizes that the bank now holds ownership stakes in two crypto firms: Zodia Custody and Zodia Markets. These companies provide essential services such as custody and over-the-counter trading, strengthening Standard Chartered’s role as a key player in the digital asset industry.

Standard Chartered introduced Libeara, their new blockchain division, which assists institutions in converting traditional assets into digital tokens. According to Bloomberg, this unit is presently collaborating on a project to establish a tokenized government bond fund using the Singaporean dollar, demonstrating the bank’s dedication to advancing blockchain technology beyond cryptocurrency exchanges.

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2024-06-21 20:23