The British hedge fund Brevan Howard Digital, which specialises in cryptocurrency and digital assets, was the first client of Standard Chartered, which has now started providing digital asset custody services in the United Arab Emirates.
The product was launched in the Gulf country due to its well-balanced approach to digital asset adoption and financial regulation. The news also marks a significant milestone in the bank’s digital asset strategy, initially supporting the two largest cryptocurrencies by market capitalisation, Bitcoin and Ethereum.
Standard Chartered first spoke about launching such a service back in 2023 when it signed a MoU with the Dubai International Financial Centre (DIFC) and obtained a licence from DIFC’s regulator, the Dubai Financial Services Authority (DFSA).
In a joint statement, Brevan Howard Digital CEO Gautam Sharma stated, “Standard Chartered’s global brand and demonstrated commitment to this field offers a layer of legitimacy that is meaningful for institutional adoption.”
During the event, Bill Winters, Group Chief Executive of Standard Chartered Bank, said, “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. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business. Our robust infrastructure, coupled with our expertise in the field, allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem.”
As per Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, the service offering goes beyond simple wallets.
The official remarked further, “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.”
The United Arab Emirates has been making great efforts to draw in some of the largest cryptocurrency companies in the world, like Binance and OKX. It has also been working to create regulations for virtual assets to draw in new types of companies.
It has also been successful in drawing large hedge funds.
Several banks, including Standard Chartered, have been expanding their presence in the cryptocurrency space as more institutional investors come to terms with the asset class.