Multinational bank Standard Chartered said it will start offering crypto custody services in the United Arab Emirates.
On Sept. 10, the consumer banking corporation said it would start its digital asset custody service with Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization. The bank has initiated its custody services in partnership with Brevan Howard Digital, the cryptocurrency division of the hedge fund Brevan Howard.
The service was first announced on May 10, 2023, when the bank signed a memorandum of understanding with the Dubai International Financial Centre (DIFC), a special economic zone in the UAE.
According to the bank, the custody solution has now been granted a license from the Dubai Financial Services Authority (DFSA), the DIFC’s dedicated financial regulator.
While the service will start with BTC and ETH, the bank wants to broaden its scope to include a wider range of crypto assets and extend its custody services to other financial hubs.
Standard Chartered continues crypto push
In the announcement, Standard Chartered’s group chief executive Bill Winters said that the new service positions the bank at the next phase of the custody business. He also explained that the bank truly believes in digital assets. He said:
“We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.”
Standard Chartered is one of the banks that are continuously making a dive into the crypto space. On July 18, the company partnered with Web3 firm Animoca Brands to participate in the stablecoin issuer sandbox led by the Hong Kong Monetary Authority (HKMA).
On Aug. 29, the company partnered with exchange Crypto.com to provide fiat services to over 90 countries, starting with the UAE. The partnership allows customers to deposit and withdraw United States dollars, United Arab Emirates dirhams and euros within the trading platform.
Related: Is Standard Chartered setting up a Bitcoin, Ether trading desk?
UAE leads in crypto adoption
The UAE is one of the leading jurisdictions in crypto adoption. According to a study by consultancy firm Henley & Partners, the UAE ranks third behind Singapore and Hong Kong in adopting digital assets.
The UAE scored 41.8 in the Henley Crypto Adoption Index 2024, almost tying with Hong Kong. The country scored high in many of the study's criteria, including economic factors, innovation and technology.
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