As the crypto sector undergoes regulatory shifts worldwide, 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. This service will provide secure custody for cryptocurrencies to its UAE-based clients, starting with Bitcoin and Ether in the initial phase.
UAE's regulatory clarity in respect to crypto assets has made it an ideal location for Standard Chartered to launch and try this service, an official statement from the lender said this week. For its own services portfolio, the bank said, this feature marks a milestone development.
“We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance,” said Bill Winters, the Group Chief Executive of Standard Chartered as commenting on the development.
As per 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 is a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk, and prudential point of view. It is 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 onboarded as the inaugural client for the new UAE-specific service by Standard Chartered.
The bank first spoke about launching such a service back in 2023 when it signed an MoU with the Dubai International Financial Centre (DIFC) and obtained a licence from DIFC's regulator, the Dubai Financial Services Authority (DFSA). At the time, Bill Winters had said that Standard Chartered views digital assets as an important part of the future of financial services worldwide.
Deutsche Bank AG, HSBC, Brazil's Itau Unibanco bank, and Goldman Sachs are other banks that are also exploring the crypto sector.
Meanwhile, as far as the UAE is concerned, its VARA regulations established in 2022 detail what crypto firms need to do and avoid doing to keep their Web3 businesses up and running. This regulatory clarity is what makes the UAE lucrative for Web3-related platform trials.
