Standard Chartered Launches Spot Bitcoin & Ethereum Trading

Key Insights:

• Standard Chartered is the first global bank to offer deliverable spot trading for Bitcoin and Ether.
• The new service is available through the bank’s UK branch and supports institutional clients only.
• Trades can settle through third-party custodians or Standard Chartered’s in-house custody platform.

Standard Chartered launched a new crypto trading service. By this move, it would become the first global bank to offer spot trading of Bitcoin and Ethereum, with delivery.

This service is only open to institutional customers and also uses the bank branch located in the UK. The move increased the digital asset access in a regulated banking setting.

Standard Chartered Offers Spot Trading for Bitcoin and Ethereum

The new crypto trading service of Standard Chartered will enable institutional clients to buy and sell Bitcoin and Ethereum directly. The offering is now active through the bank’s UK branch, making it the first global bank to provide such access.

Per Rene Michau, global head of digital assets at Standard Chartered, the service operates during Asia and European trading hours. The bank may expand to 24/5 access depending on future demand.

Additionally, trading will be conducted via interfaces familiar to clients, particularly those used in foreign exchange operations. This design will allow seamless access without the need to adopt new platforms.

Besides, the bank clarified that this service is focused strictly on BTC and ETH. However, it may include additional services, such as non-deliverable forwards (NDFs). This depends on the needs of institutional users.

Institutional Clients Gain Access Through UK Branch

Standard Chartered’s services are designed specifically for institutional clients. These include asset managers, large corporations, and clients working through its corporate and investment banking division. This limits access to parties with high regulatory and operational readiness.

Furthermore, the rollout was offered through the UK bank’s branch. With the jurisdiction’s location, the bank complies with local regulatory frameworks for trading digital assets.

The choice to start in the UK also offered a straightforward framework for client onboarding. It provided the settlement of trades from a structured legal perspective.

Standard Chartered confirmed the trading desk for Bitcoin and Ethereum will remain within its UK operations for the foreseeable future. Michau noted that expansion beyond the UK would be based on regional demand and compliance readiness in those jurisdictions.

Custody Flexibility Built Into the Service

Meanwhile, clients using Standard Chartered’s spot crypto trading can choose where their digital assets are settled. The bank allows trades to be completed through third-party custodians or an in-house custody platform.

This flexibility ensures clients can align their crypto asset management with existing custody arrangements. Standard Chartered has been active in the digital custody sector since its investment in Zodia Custody. It is a digital asset custodian based in the UK.

The Financial Conduct Authority governs it and has been a custodian of choice to several bank clients. Furthermore, Standard Chartered supports Zodia Markets, an institutional-grade digital asset trading platform.

The bank’s in-house custody arrangement will accommodate high compliance and security requirements. Nonetheless, the choice of an external custodian will provide greater usage by clients with multi-platform custody plans.

Notably, the bank has been outspoken on its positive opinion on crypto. Standard Chartered forecasted that the Bitcoin price would surpass six figures by the close of 2024.

Standard Chartered reaffirmed its belief that Bitcoin is a key hedge against financial instability. It now targets a $200,000 Bitcoin price by the end of 2025.

Crypto Trading Integrated Into Existing Platforms

Instead of creating new infrastructure, the crypto spot trading service exists within Standard Chartered’s existing trading infrastructure. Clients can access the service via commonly used FX interfaces without special tools or high learning curves.

In the meantime, the market continues to respond to macroeconomic indicators. This is even though the expansion of crypto interest among institutions has increased.

CPI data has become an important pivot point of crypto volatility. Traders await data that may cause a surprise shift in inflation.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.