Standard Chartered has launched a digital asset custody service in the United Arab Emirates (UAE), licensed by the Dubai Financial Services Authority. The service aims to provide secure storage for digital assets, initially focusing on bitcoin and ethereum. Brevan Howard Digital is the first client, and the bank plans further expansion into additional digital assets. The launch highlights the growing institutional demand for secure, regulated digital asset services.

Standard Chartered Launches Digital Asset Custody Service in UAE

Global bank Standard Chartered announced on Tuesday the launch of its digital asset custody service in the United Arab Emirates (UAE). The offering has been granted a license by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC), a leading global financial hub, following the memorandum of understanding (MoU) signed in May 2023.

Noting that initially, the offering supports bitcoin and ethereum, the announcement states:

The service, which enables clients to safekeep their digital assets, has launched in the UAE due to its well-balanced approach to digital asset adoption and financial regulation, and marks a significant milestone in the bank’s digital asset strategy.

Brevan Howard Digital, part of Brevan Howard, is the inaugural client of the service. Standard Chartered’s Group Chief Executive, Bill Winters, highlighted the significance of the launch, stating, “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.”

Margaret Harwood-Jones, Global Head of Financing & Securities Services, said: “This announcement demonstrates the growing institutional interest in digital assets and the critical need for secure, regulated custody solutions.” The service aims to address regulatory, risk, and security needs of institutions.

Gautam Sharma, CEO of Brevan Howard Digital, described the partnership as pivotal for the UAE and digital asset markets. He emphasized that Standard Chartered’s reputation bolsters institutional adoption. The bank plans to broaden its services to other digital assets and expand into additional financial hubs. Harwood-Jones underscored that their solution goes beyond simple custody by integrating prudential standards, saying it is “a game changer” for institutional clients navigating the digital asset sector.

Source : Bitcoin News - Sep 11, 2024