Standard Chartered has officially introduced its cryptocurrency custody services in the United Arab Emirates (UAE). The bank’s new offering will initially focus on Bitcoin (BTC) and Ether (ETH), the top two cryptocurrencies by market value. This development represents a key milestone in Standard Chartered’s expanding involvement in the digital assets space.
Partnership and Licensing
The launch of these custody services follows Standard Chartered’s partnership with Brevan Howard Digital, a division of the hedge fund Brevan Howard that specializes in cryptocurrency. This collaboration is designed to enhance the bank’s capabilities in managing digital assets securely.
Initially announced on May 10, 2023, the service was solidified through a memorandum of understanding with the Dubai International Financial Centre (DIFC), a major financial hub in the UAE. Recently, Standard Chartered received regulatory approval from the Dubai Financial Services Authority (DFSA), which oversees financial activities in the DIFC, to proceed with their custody solutions.
Standard Chartered’s decision to start with Bitcoin and Ether reflects a strategic approach to enter the cryptocurrency market. However, the bank plans to broaden its service offerings in the future to include a wider array of digital assets. Additionally, there are intentions to extend these custody services to other prominent financial centers.
The bank’s broader strategy includes other notable initiatives in the crypto space. In July 2024, Standard Chartered partnered with Animoca Brands to join a stablecoin issuer sandbox led by the Hong Kong Monetary Authority (HKMA). Furthermore, in August 2024, the bank teamed up with Crypto.com to provide fiat services in over 90 countries, beginning with the UAE. This partnership facilitates transactions in US dollars, UAE dirhams, and euros.
UAE’s Position in Crypto Adoption
The UAE continues to establish itself as a leading jurisdiction for cryptocurrency adoption. According to the Henley Crypto Adoption Index 2024, the UAE ranks third globally, just behind Singapore and Hong Kong. This high ranking reflects the country’s robust performance in areas such as economic factors, innovation, and technology.
Standard Chartered’s introduction of crypto custody services in the UAE marks a significant advance in its digital asset strategy. Supported by a strategic partnership with Brevan Howard Digital and regulatory approval from the DFSA, the bank is poised to expand its services and capitalize on the growing interest in cryptocurrencies. The UAE’s position as a leading crypto adoption hub further enhances the importance of this new service offering.
Featured image credit: Kanchanara via Unsplash
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