SC Ventures, the investment arm of Standard Chartered Bank, has made a strategic investment in Bitpanda spinoff One Trading. The company plans to use this investment to launch the first perpetual futures on cryptocurrencies in the European Union.
Investing in new market potential
Thanks to its Organized Trading Facility (OTF) license received in July from the Dutch Financial Markets Authority, One Trading became the first European cryptocurrency exchange able to offer financial products under the Markets in Financial Instruments Directive 2018 (MiFID II). Crypto assets that are defined as financial instruments are regulated under MiFID II, rather than the Markets in Crypto-Assets Regulation (MiCA). Now, One Trading is the only perpetual futures trading platform in the European Union. It also became the first cash-settled perpetuals platform in Europe, including the United Kingdom, and the first regulated European derivatives exchange open to retail clients. MiFID II increased transparency and consumer protection on European financial markets. SC Ventures CEO Alex Manson said: "Financial innovation should not come at the cost of consumer protection, that’s why we are glad to see One Trading receiving the OTF License. We congratulate the team on becoming the first MiFID II trading venue for crypto perpetual futures in the EU."
Slow approach to Europe
Standard Chartered and SC Ventures have a hand in cryptocurrency businesses worldwide, mainly in Asia and the Middle East. SC Ventures and Northern Trust partnered to launch the UK-registered Zodia crypto custody platform in 2021. Standard Chartered and Chinese fintech Linklogis set up the Olea digital infrastructure platform in 2021. In 2023, SC Ventures established a joint venture in the United Arab Emirates with the Japanese conglomerate SBI Holding.
Other initiatives by SC Ventures
This year, Mox virtual bank, a Hong Kong-based Standard Chartered subsidiary, launched crypto exchange-traded fund trading in Hong Kong. Standard Chartered also partnered with Singapore-based Crypto.com to provide fiat currency services in the UAE and partnered with Brevan Howard to open crypto custody services in the UAE.
The launch of perpetual futures on cryptocurrencies in Europe could be a significant step for the European crypto market, increasing its attractiveness to investors and bringing new technologies into the regulatory field.
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