June 25, 2024<\/p>\n\n\n\n
By Anjali Kochhar<\/p>\n\n\n\n
Standard Chartered Plc is going to lead the way among major banks by establishing a trading desk dedicated to Bitcoin and Ether, according to persons familiar with the situation. This is a big step forward as the bank wants to integrate cryptocurrency trading into its Foreign Exchange (FX) operations, which are anticipated to begin soon from its London base.<\/p>\n\n\n\n
While institutions like Goldman Sachs Group Inc. have long engaged in cryptocurrency derivatives trading, direct involvement with underlying assets has been restrained by stringent regulations. Notably, the Basel Committee on Banking Supervision’s proposal requires banks to assign a hefty 1,250 percent risk weighting to unhedged crypto exposure, posing challenges to profitability.<\/p>\n\n\n\n
In response to growing institutional client demand, Standard Chartered has been collaborating closely with regulators. The bank emphasised its commitment to supporting clients across the digital asset spectrum, encompassing access, custody services, tokenisation, and interoperability.<\/p>\n\n\n\n
Standard Chartered declined to elaborate further on its plans. However, the bank has already made strategic investments in the crypto sector, holding stakes in Zodia Custody and Zodia Markets, firms offering services from custody solutions to over-the-counter trading. Moreover, the establishment of its blockchain unit, Libeara, underscores its proactive stance in facilitating the tokenisation of traditional assets, such as a government bond fund denominated in the Singaporean dollar.<\/p>\n\n\n\n
This initiative coincides with a period of decreased Bitcoin volatility, reflecting broader market trends akin to traditional equities. Despite recent fluctuations, the successful introduction of US Bitcoin exchange-traded funds earlier this year has bolstered market liquidity, emboldening major institutions to expand their involvement in digital assets.<\/p>\n\n\n\n
Standard Chartered’s upcoming entry into spot cryptocurrency trading demonstrates a deliberate shift toward accommodating institutional interest in digital assets, matching larger industry trends toward increased use and integration within traditional financial institutions.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n","protected":false},"excerpt":{"rendered":" June 25, 2024 By Anjali Kochhar Standard Chartered Plc is going to lead the way among major banks by establishing a trading desk dedicated to Bitcoin and Ether, according to persons familiar with the situation. This is a big step forward as the bank wants to integrate cryptocurrency trading into its Foreign Exchange (FX) operations, […]<\/p>\n","protected":false},"author":4,"featured_media":4911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107],"tags":[],"class_list":["post-4910","post","type-post","status-publish","format-standard","has-post-thumbnail","category-all"],"yoast_head":"\n