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Standard Chartered Launches Crypto Custody in UAE: Pioneers Secure BTC and ETH Services

Standard Chartered's new crypto custody service in the UAE sets new standards in payment development...

D
Digital Era News
11/09/2024
3 mins read
Standard Chartered’s new crypto custody in UAE boosts Ethereum and Bitcoin dominance, impacting blockchain companies

In a major move for the financial services industry, Standard Chartered has launched a digital asset custody service in the UAE, starting with Bitcoin and Ethereum. The service, approved by the Dubai Financial Services Authority (DFSA), is poised to set new standards for blockchain security while reflecting the growing demand for secure crypto investing solutions in the region. Partnering with Brevan Howard Digital, the initiative aims to position Standard Chartered as a leader in digital asset management.

  • Standard Chartered begins crypto custody services, marking a pivotal moment for blockchain companies in the UAE.
  • Offering custody solutions for Bitcoin and Ethereum, the bank takes its first steps into blockchain transactions.
  • The initiative enhances Bitcoin dominance and brings fresh perspectives on the changing payment landscape.

On September 10, 2024, Standard Chartered announced the launch of its crypto custody service in the UAE, marking the bank's latest foray into the burgeoning world of digital assets. Initially covering Bitcoin and Ethereum, the service is designed to meet the growing demand for secure and regulated blockchain security solutions. This move follows a memorandum of understanding with the Dubai International Financial Centre (DIFC), signed in May 2023, and sets the stage for the bank's continued expansion into the crypto space. 

The launch signals a broader trend within the financial industry as more blockchain companies seek secure ways to manage digital assets. With the two most recognizable cryptocurrencies logo leading the way, this service is set to grow beyond Bitcoin and Ethereum, with plans to include a wider range of digital assets and expand to other financial hubs. By doing so, Standard Chartered is strengthening its position in the world of finance with blockchain security.

Reliable payment systems are essential for the broader adoption of digital assets. Standard Chartered's crypto custody service addresses this need by providing a secure way to store and manage cryptocurrencies. This initiative strengthens trust in digital payments and positions the bank as a key player in the evolving crypto space.

The UAE has emerged as a global leader in crypto adoption, ranking third behind Singapore and Hong Kong according to the Henley Crypto Adoption Index 2024. The country’s progressive stance on crypto regulation makes it a prime hub for blockchain companies and crypto investing. By expanding its custody services, Standard Chartered is well-positioned to play a pivotal role in the region's digital economy.

Brevan Howard Digital, the cryptocurrency division of the hedge fund Brevan Howard, is playing a critical role in this initiative. This partnership reinforces the importance of institutional-grade custody solutions for the future of cryptocurrency.

Expert Opinions and Quotes

Bill Winters, Group Chief Executive of Standard Chartered: "The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered but for the financial services industry. We firmly believe that digital assets are not merely a passing trend but a fundamental shift in the fabric of finance." - Source
Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered: "This announcement demonstrates the growing institutional interest in digital assets and the critical need for secure, regulated custody solutions. Our offering goes beyond simple wallet services; it is a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk, and prudential point of view." - Source
Alan Howard, Co-founder of Brevan Howard: "The partnership with Standard Chartered for digital asset custody is a strategic move that enhances our capabilities and reinforces our commitment to improving standards in the digital asset ecosystem." - Source

FAQ

What is Bitcoin halving?
Bitcoin halving is a key event in the Bitcoin network where the reward for mining new Bitcoin blocks is halved. This process affects Bitcoin dominance by reducing the rate at which new Bitcoins are created, influencing the cryptocurrency's market value and scarcity.

Is Ethereum a good investment?
Ethereum has made its mark in the industry and is considered a good investment option, particularly due to its staking mechanism, which offers rewards to those who lock their Ethereum in the network.

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