Key Points
- Standard Chartered sets up a Bitcoin and Ethereum trading desk run from London.
- The move makes it one of the first global banks to enter crypto trading.
Standard Chartered is setting up a trading desk for Bitcoin and Ethereum, according to the latest reports from Bloomberg quoting people familiar with the matter.
The move makes it one of the first global banks to enter spot crypto trading.
The new crypto desk is about to start operations and it will be part of the bank’s FX trading unit, being run from London.
The same reports mention the fact that banks including Goldman Sachs Group have been trading crypto derivatives for years, but strict regulations have kept them from dealing directly in the underlying digital assets.
The Basel Committee on Banking Supervision proposed that banks must apply a 1,250% Irish weighing to any unhedged crypto exposure, making it difficult to generate profits.
Standard Chartered works closely with regulators
Also, in an emailed statement, the bank reportedly said that it has been working closely with regulators to support demand from institutional clients to trade BTC and ETH.
This is in line with the strategy to support clients across the wider crypto ecosystem, from access and custody to tokenization and interoperability.
Standard Chartered is among the large banks pushing deeper into crypto amidst the intensified institutional crypto adoption.
The bank owns stakes in two crypto firms Zodia Custody and Zodia Markets, which offer services ranging from custody to OTC trading.
Bloomberg noted that back in November, the bank launched a blockchain unit called Libeara in order to help institutions tokenize traditional assets. The unit supports creating a tokenized government bond fund using the Singaporean dollar.
Institutional interest in crypto is on the rise and this is highlighted also by Bernstein analysts who recently revealed that Bitcoin ETFs are close to being approved at major warehouses and large private bank platforms in Q3 and Q4 2024.
