- Importance of Digital Assets
- Why the UAE? A Growing Crypto Ecosystem
- Licensing and Compliance Process
Standard Chartered, one of the world's leading financial institutions, has announced the launch of its digital asset custody service in the UAE. The new service, licensed by the Dubai Financial Services Authority (DFSA) and based within the Dubai International Financial Centre (DIFC), aims to provide secure storage solutions for Bitcoin and Ethereum initially, with plans to expand to other digital assets in the near future.
Importance of Digital Assets
Bill Winters, Group Chief Executive of Standard Chartered, stressed the importance of digital assets in the future of global finance. He noted that the launch of this custody service is not just a milestone for the bank but for the entire financial industry.
Why the UAE? A Growing Crypto Ecosystem
The UAE has rapidly become a major player in the global crypto space. According to a 2024 study by Henley & Partners, the UAE ranks third globally in crypto adoption, trailing only behind Singapore and Hong Kong. The country has scored highly in factors like innovation, technology, and economic development, making it a hotspot for digital finance.
Licensing and Compliance Process
The approval of the digital asset custody service came after more than a year of collaboration between Standard Chartered and UAE regulators to ensure the service complies with local regulations. Standard Chartered worked closely with the DFSA to build the necessary infrastructure and guarantee that its service meets the highest security and compliance standards.
The first official client of the service is Brevan Howard Digital, a part of the larger Brevan Howard investment management firm. While the initial focus of the custody service is on Bitcoin and Ethereum, Standard Chartered has plans to expand its offering to include other digital assets in the near future. The bank also aims to extend its crypto custody services beyond the UAE to other key markets, positioning itself as a global leader in the custody of digital assets.
