Standard Chartered Bank has officially launched its digital asset custody service in the United Arab Emirates (UAE). This service has been licensed by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC). The bank took this step following a memorandum of understanding signed in May 2023.
The Importance of Digital Assets
Standard Chartered Group CEO Bill Winters stated that the digital asset custody service is a significant milestone not only for the bank but also for the financial services sector. Winters emphasized that digital assets are not just a passing trend but a fundamental change in finance. With this new service, the bank aims to create a bridge between the emerging digital asset ecosystem and the world of financial services.
Initial Focus on Bitcoin and Ethereum
The new custody service initially focuses on securely storing digital assets such as Bitcoin and Ethereum. The bank’s decision to launch this service in the UAE is based on the country’s balanced approach to the adoption of digital assets and financial regulations. Brevan Howard Digital has been identified as the first client of this new service. Brevan Howard is a global investment management platform specializing in macro and digital assets.
Security and Regulation
Margaret Harwood-Jones, Standard Chartered’s Head of Global Financing and Securities Services, noted that this launch aims to meet the institutional interest in digital assets. Harwood-Jones highlighted that this service goes beyond simple wallet services, addressing unique challenges in digital asset custody from regulatory, risk, and prudential perspectives. This signifies a substantial change for institutional clients. The bank aims to support its clients in navigating the complexities of the digital asset space without compromising on the highest security standards, thanks to its robust infrastructure and expertise. Additionally, Standard Chartered is exploring opportunities to launch custody services in other global financial centers.
By launching its digital asset custody service in the UAE, Standard Chartered has taken a significant step in the financial services sector. The bank aims to meet the interest of institutional clients in digital assets and provide comprehensive solutions in terms of regulation, risk, and security. Planning to expand its services to include more digital assets and global financial centers in the future, the bank closely monitors developments in the digital asset arena.
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