Standard Chartered Launches Licensed Crypto Custody in UAE

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The UAE Crypto Market Welcomes Standard Chartered’s Licensed Custody Services

The cryptocurrency industry in the United Arab Emirates has been engulfed by Standard Chartered, who have announced their launch of licensed custody services. By obtaining the license from the Dubai Financial Services Authority (DFSA), the bank is now able to offer secure storage of Bitcoin and other digital assets to institutional clients within the DiIFC.

This represents a significant milestone for the institution, which has long been interested in using digital asset protection. It is a welcome development for Standard Chartered to enter the UAE crypto market, which has been emerging as one of Europe’s leading economies for cryptocurrency adoption, according to Tom Smart and the London-based consultancy Henley & Partners. “The UAE is currently third in terms of crypto adoption worldwide with three top positions”, adding that its first client was digital asset storage provider, cyber security firm Brevan Howard Digital (“the virtualization arm”) company owned by Freddie Mac.

The bank’s partnership with Standard Chartered highlights the growing need for secure and regulated digital asset services, which are now commonplace among institutional investors. The firm is known for providing crypto custody services to institutional clients, including Bitcoin and Ethereum. However, other digital assets will also be involved in the future.

This move is part of the bank’s long-term strategy to remain ahead of emerging digital asset trends, with major hedge funds such as Brevan Howard, Millennium Management, ExodusPoint Capital Management, and BlueCrest investing in the country. The UAE has become a hub for cryptocurrency investment and innovation, thanks to the support of these key players.

An agreement called an Memorandum of Understanding (MoU) was signed in May 2023, which now includes Standard Chartered’s crypto custody services in the UAE. The bank’s Group Chief Executive, Bill Winters has been emphasizing the importance of crypto assets as a significant change in the financial sector. He stated that the bank values their potential and is committed to providing innovative solutions to its customers.

Standard Chartered has successfully licensed itself to operate in a regulated environment, guaranteeing the highest level of security and compliance for its institutional clients. The integration of renowned financial institutions into the UAE crypto market is anticipated to boost investor confidence and further develop the digital asset landscape.

The bank’s crypto custody services are expected to play a crucial role in shaping the future of digital asset services, as they are increasingly sought after and secured. With the UAE solidifying its position as a leader in cryptocurrency adoption, Standard Chartered’s entry into the market is expected to have significant consequences for the industry.

To learn more about the growing crypto market in the UAE and the role of Standard Chartered, read our in-depth article: “UAE Crypto Market Booms with Standard Chartered’s Entry”.

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