Global banking giant Standard Chartered has officially launched a digital asset custody service in the United Arab Emirates (UAE), further strengthening its foothold in the growing digital asset space. The service is licensed by the Dubai Financial Services Authority (DFSA) and operates within the Dubai International Financial Centre (DIFC), a major financial hub. This launch follows a memorandum of understanding signed in May 2023, signaling the bank’s commitment to expanding its digital asset strategy.
Initial Focus on Bitcoin and Ethereum
At its inception, the custody service will focus on providing secure storage solutions for two of the most prominent cryptocurrencies—Bitcoin and Ethereum. The service, designed to safeguard digital assets, marks a significant step for both Standard Chartered and the broader digital asset market in the UAE, which has fostered a balanced approach to regulation and adoption of digital assets.
Brevan Howard Digital, a division of Brevan Howard, is the service’s first client. This partnership illustrates growing institutional interest in the digital asset sector and highlights the need for secure, regulated custody solutions.
A Growing Institutional Market
Standard Chartered’s Group Chief Executive, Bill Winters, emphasized the lasting impact of digital assets on the global financial system, stating, “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.” The move underscores the bank’s view that digital assets will play a vital role in the future of finance.
Margaret Harwood-Jones, the bank’s Global Head of Financing & Securities Services, noted the importance of secure custody solutions for institutions, particularly in addressing the complex regulatory, risk, and security requirements of the digital asset market.
Expanding Beyond Custody
The service is set to expand beyond Bitcoin and Ethereum, with plans to broaden into additional digital assets and financial hubs. Harwood-Jones described the custody service as a “game changer” that goes beyond basic storage by integrating prudential standards, offering a comprehensive solution for institutional clients navigating the digital asset landscape.
Gautam Sharma, CEO of Brevan Howard Digital, stressed that the partnership with Standard Chartered would enhance institutional adoption in the UAE and boost confidence in the broader digital asset market. He praised Standard Chartered’s reputation for strengthening institutional involvement in the growing sector.
