Standard Chartered Launches Digital Custody Service for BTC and ETH in the UAE

As the crypto sector undergoes regulatory changes globally, banks are increasingly exploring opportunities to offer services related to virtual digital assets (VDAs). In a recent development, London-based Standard Chartered has launched a digital asset custody service in the UAE. The service will provide secure custody of cryptocurrencies to its UAE clients, starting with Bitcoin and Ether in the initial phase.

The clarity of the UAE’s regulations regarding crypto assets has made it an ideal location for Standard Chartered to launch and test this service, according to an official statement from the lender said this week. For its own service portfolio, the bank said, the feature marks a milestone development.

“We firmly believe that digital assets are not just a passing trend but a fundamental shift in finance,” said Bill Winters, Group Chief Executive of Standard Chartered, commenting on the development.

According to Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, the service offering goes beyond simple wallets. Without going into too much detail, Harwood-Jones said: “It’s a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk and prudential perspective. It’s a game changer for institutional clients, as we can support them with our traditional expertise to navigate the complexities of the digital asset space.”

Brevan Howard Digital, the crypto division of investment management platform Brevan Howard, has been signed by Standard Chartered as the first client for its new UAE-specific service.

The bank first talked about launching such a service in 2023, when it signed an MoU with the Dubai International Financial Centre (DIFC) and was granted a license by the DIFC’s regulator, the Dubai Financial Services Authority (DFSA). Bill Winters had said at the time that Standard Chartered sees digital assets as a key part of the future of financial services globally.

Deutsche Bank AG, HSBC, Brazilian bank Itau Unibanco and Goldman Sachs are other banks also exploring the crypto sector.

Meanwhile, as far as the UAE is concerned, the VARA regulations enacted in 2022 outline what crypto companies must do and avoid to keep their Web3 businesses afloat. This regulatory clarity is what makes the UAE lucrative for Web3-related platform trials.