In a bold move, British multinational bank Standard Chartered is preparing to launch a trading desk for Bitcoin and Ether, marking its debut in spot cryptocurrency trading among global banks. This strategic step comes after engaging with various players in the digital asset sector and forming partnerships to meet the growing demand for crypto exposure. Reports suggest that the new crypto desk, soon to be operational, will be incorporated into the bank’s FX trading unit, with London as its headquarters.
Standard Chartered’s foray into the digital assets space has been gradual yet significant, with investments in two cryptocurrency firms, Zodia Custody and Zodia Markets. These firms offer a range of services from custody solutions to over-the-counter trading. Additionally, a partnership with popular crypto exchange Coinbase was established to cater to Singapore users, further solidifying the bank’s presence in the cryptocurrency market.
The launch of “Libeara,” Standard Chartered’s blockchain division, exemplifies the bank’s commitment to assisting institutional clients in tokenizing traditional assets. Currently, the unit is focused on developing a tokenized government bond fund denominated in the Singaporean dollar, showcasing the bank’s innovative approach to blockchain technology and digital assets.
Standard Chartered has shown optimism and bullish sentiment towards Bitcoin’s price trajectory, going as far as predicting a price of $250,000 by 2025 if spot ETF inflows reach the estimated $75 billion mark. This bullish outlook aligns with the bank’s belief in the long-term viability and importance of digital assets in the future of financial services, including stablecoins.
Standard Chartered’s entry into the cryptocurrency market and its proactive approach towards digital assets and blockchain technology signal a new chapter in the bank’s evolution. By embracing innovation and catering to institutional demand for crypto exposure, Standard Chartered is poised to make a significant impact in the ever-expanding digital assets sector.