British multinational banking giant Standard Chartered Bank has announced its plan to launch a crypto custody service for Bitcoin (BTC) and Ethereum (ETH) in Dubai by early 2024. This move is in line with the bank’s ambitious strategy to establish a comprehensive cryptocurrency settlement network.
The Crypto Custody Service Launch in Dubai
In an interview with CoinDesk, Waqar Chaudry, Executive Director of Innovation at Standard Chartered, confirmed the bank’s intentions to introduce BTC and ETH custody services in the United Arab Emirates (UAE). This service aims to cater to the rising demand for digital asset custody solutions among institutional clients in the region.
“We have existing rails and settlement capability as well as service provision with other traditional custodians; we can service them, we can use them, they can use us. So that network effect will take hold pretty quickly after entities like us enter the market, rather than depending on a single bank network, unlike what recently failed institutions had built for the crypto market.” –
Waqar Chaudry, Executive Director of Innovation, Standard Chartered
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Earlier this year, Standard Chartered signed a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC). This MoU was aimed at collaborating on digital assets, including digital asset custody. The bank has now secured the necessary regulatory approvals, making the announcement of its crypto custody service official with a set timeline.
Zodia Custody, a leading institution-first digital asset custodian developed by Standard Chartered, will oversee the custody service. Notably, Zodia Custody has been granted In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter (OTC) market.
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As the demand for cryptocurrency services continues to grow worldwide, Standard Chartered’s decision to expand into Dubai could serve as a driving force for increased adoption across the Middle East. In addition, the bank’s proposed cryptocurrency settlement network will further enhance the region’s digital asset infrastructure.
The launch of crypto custody services by a prominent global institution like Standard Chartered Bank in Dubai reflects the shift in sentiment from traditional financial institutions towards embracing the opportunities presented by digital assets.
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Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
