Key Points
- Standard Chartered Bank is establishing a trading desk for Bitcoin (BTC) and Ethereum (ETH).
- The bank is one of the first major financial institutions to offer Bitcoin and Ether spot trading services.
Standard Chartered Bank is on the verge of launching a trading desk for Bitcoin (BTC) and Ethereum (ETH), according to sources close to the matter. The desk is nearing completion and is expected to be operational soon.
Setting a New Standard
Upon the platform’s introduction, Standard Chartered will become a pioneer among financial giants, offering Bitcoin and Ether spot trading services to its clients. The new platform will be based in London and will be a part of the bank’s foreign exchange trading unit, WFX.
Other banking powerhouses, including Goldman Sachs, have been providing crypto derivatives services to their clients since 2022. Yet, these firms have not been able to penetrate the spot market due to strict regulations from the Basel Committee on Banking Supervision.
The committee suggested new regulatory measures requiring banks to apply a 1,250% risk weighting to any unhedged crypto exposure, making it challenging for firms to profit from their ventures.
Standard Chartered has informed Bloomberg that it has been working with regulators to ensure that institutional customers can trade cryptocurrencies.
Standard Chartered’s Cryptocurrency Journey
Despite being one of the first global banks to venture into spot crypto trading, Standard Chartered has been involved with the crypto economy for some time.
In November 2023, the bank launched a blockchain tokenization platform, Libeara, through its venture capital unit, SC Ventures. Currently, the platform is among the blockchain companies assisting the Singaporean government in exploring the potential of developing a tokenized government bond using its fiat currency.
Standard Chartered has also made strategic investments in numerous crypto-native companies, such as Zodia Custody and Zodia Markets. The bank holds significant stakes in both companies, offering custody services and over-the-counter trading to institutional clients.
Last year, the bank announced its plans to launch crypto custody services for institutional investors to secure their BTC and Ether purchases in Dubai.
In May 2024, the bank disclosed that it had completed a Euro-denominated cross-border transaction between Hong Kong and Singapore on Partior, a blockchain global unified infrastructure market. The bank was the first Euro settlement bank to go live on the platform. However, its relationship with Partior began in November 2022 when the bank made a strategic investment in the Blockchain company.
