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Standard Chartered has become the first direct spot trader of Bitcoin and Ethereum, marking a milestone in institutional involvement in digital assets. Through the bank's branch in the UK, the service allows institutional clients to trade and settle actual crypto assets rather than derivatives. The bank offers this trading solution, along with built-in risk management, through its digital assets platform, Zodia Markets.
As such, it is the first systemically crucial global bank to offer such services, and Standard Chartered will also seek to address increased demand within the institution. Through this, asset managers and corporations can now access spot trading during the hours of the Asian and European markets. Trading is flexible and secure on the platform, and selected custodians can utilize it for settlement purposes.
The bank intends to extend its coverage depending on demand, which may include a 24/5 trading facility. It also plans to present both Bitcoin and Ethereum non-deliverable forwards (NDFs). These products aim to provide institutional investors with additional risk management options.
As part of its broader digital finance strategy, Standard Chartered is integrating these services. In the first months of this year, the bank created a structure in Luxembourg that offers regulated crypto custody in the EU. It has also ventured into stablecoins and partnered with other entities in Hong Kong to launch a token tied to the local currency. Such developments also relate to the bank's plans to provide compliant, scalable, and secure access to the crypto markets.
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The bank's chief executive, Bill Winters, reaffirmed the bank's position on digital assets, stating that they are essential to transforming financial services. The Global Head of Trading, Tony Hall, also noted the bank's capacity to provide regulated crypto solutions outside the bank using its global trading infrastructure.
Although the bank is currently focused on Bitcoin and Ethereum, it could expand the products available to incorporate digital derivatives and other asset classes. Blockchain liquidity and staking activity have not shown any significant changes following the announcement.
Standard Chartered's action reflects an increasing trend among conventional financial institutions to merge with digital assets. By engaging in spot crypto trading within a regulated environment, the bank will lower the institutional adoption cost, marking a trend toward normalized involvement in the cryptocurrency business.
