Standard Chartered, a British multinational bank, is making waves in the financial world by announcing its plans to launch a trading desk for Bitcoin and Ether. This move positions the bank as one of the pioneers among global financial institutions to delve into spot cryptocurrency trading. The decision comes after engaging with various players in the digital asset sector and forming partnerships to meet the surging demand for exposure to cryptocurrencies.
Sources familiar with the matter revealed that the new crypto desk is nearing completion and will become a part of the bank’s FX trading unit, with its base of operations set in London. While the bank is yet to officially confirm the development, it acknowledged the increasing interest from its institutional clients in Bitcoin and Ethereum. The bank expressed its commitment to supporting clients across the digital asset ecosystem, encompassing aspects such as access, custody, tokenization, and interoperability.
Expanding Presence in Digital Assets Sector
In addition to the trading desk, Standard Chartered has established stakes in two cryptocurrency firms, Zodia Custody and Zodia Markets, providing a range of services including custody and over-the-counter trading. Moreover, the bank collaborated with crypto exchange Coinbase to offer banking services to users in Singapore and introduced “Libeara,” a blockchain division aiding institutional investors in tokenizing traditional assets. The division’s current focus is on developing a tokenized government bond fund denominated in the Singaporean dollar.
Standard Chartered has shown a strong belief in the future and potential of digital assets, emphasizing their significance in the financial services landscape. The bank’s outlook includes optimism towards stablecoins and a bullish stance on Bitcoin’s price trajectory. In a bold prediction, the bank suggested that Bitcoin’s price could soar to $250,000 by 2025 if spot ETF inflows reach the estimated $75 billion mark. This forecast underscores Standard Chartered’s confidence in the long-term value and growth of cryptocurrencies.
Overall, Standard Chartered’s foray into cryptocurrency trading and digital assets signals a strategic shift towards embracing the evolving financial landscape. By actively engaging in the crypto space and forming key partnerships, the bank is poised to capitalize on the growing institutional demand for exposure to cryptocurrencies. As the industry continues to evolve, Standard Chartered’s proactive approach positions it as a frontrunner in navigating the complexities and opportunities presented by digital assets.
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