The British multinational bank Standard Chartered has entered the European cryptocurrency market by securing a digital asset license in Luxembourg. This marks a significant step in the bank's strategy to expand its crypto custody services across the European Union.
New Division in Luxembourg
Standard Chartered announced the establishment of a new division in Luxembourg, which will serve as its main regulatory hub for offering crypto and digital asset custody services throughout the European Union. Laurent Marochini, formerly of Société Générale, will head this venture as the CEO.
Regulatory Environment and Services
The new division is introduced in the wake of the Markets in Crypto-Assets (MiCA) Regulation, a key regulatory framework for cryptocurrencies in the EU. Initially, the bank will provide custody services for Bitcoin and Ether, with plans to expand to additional assets by 2025. As confirmed by Waqar Chaudry, the head of digital assets, the service will focus on the secure storage and protection of digital assets, without including crypto trading in the initial offerings.
Strategic Developments in Digital Assets
The Luxembourg division is part of Standard Chartered's broader strategy to expand its digital asset offerings globally. In September 2024, the bank introduced these services in the United Arab Emirates, granting institutional clients access to Bitcoin and Ether. Reports suggest plans to integrate this crypto trading operation within their FX division.
The launch of Standard Chartered's new division in Luxembourg represents a critical milestone in the bank's strategy to broaden its presence in the digital asset market. The bank continues to collaborate actively with regulators and other financial institutions to promote best practices in the cryptocurrency industry.
