Starting in the first quarter of 2024, Standard Chartered PLC will introduce a new crypto custody service for Bitcoin (BTC) and Ethereum (ETH) to institutional clients in Dubai, UAE. This service will be operated by Zodia Custody, the bank’s leading digital asset custodian.
Standard Chartered, a British multinational services company, has been a significant player in the UAE since 1958, with its first branch opening in Sharjah. Over the years, the bank has expanded its presence in the UAE, becoming a regional hub for its operations across Africa and the Middle East, as well as for its Islamic Banking division, Standard Chartered Saadiq.
Earlier this year, the bank signed a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC) to collaborate on digital assets, including custody services. With the necessary regulatory approvals now in place, the official launch of the crypto custody service is confirmed for early 2024.
Waqar Chaudry, Executive Director of Innovation at Standard Chartered, highlighted the strategic advantage of their established network: “We have existing rails and settlement capabilities, and we’re positioned to leverage these networks effectively. This will foster quick adoption and integration into the market, unlike some failed institutions that relied on single-bank networks.”
Zodia Custody, a key player in the digital asset space, has also secured In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter (OTC) market.
Expanding Crypto Hubs
The UAE was chosen for this expansion due to its favourable regulatory environment, especially compared to the increasingly stringent regulations in the US. The UAE’s supportive stance towards digital assets, demonstrated by the UAE Blockchain Strategy 2021, creates an attractive environment for crypto firms.
Chaudry noted the UAE’s forward-thinking approach: “In 2018, while regions like Singapore and the UAE were making strides in crypto asset regulation, other areas were still defining crypto’s status. Now, countries like the UAE, Japan, Singapore, and Hong Kong are leading the way in digital asset maturity.”
With its new UAE license, Standard Chartered plans to offer its crypto custody services globally, further solidifying its position in the digital asset sector.
