Institutional cryptocurrency trading for Bitcoin and Ether has been initiated by Standard Chartered.
In a significant move for traditional finance (TradFi) institutions, Standard Chartered has launched institutional spot trading for Bitcoin and Ethereum through its UK subsidiary, marking a new chapter in the bank's digital asset strategy.
The launch, which includes corporates, investors, and asset managers as clients, is part of a phased approach, with plans to expand the service to a global client base once onboarding through the UK branch is completed. Alongside spot trading, Standard Chartered also plans to introduce non-deliverable forwards (NDFs) for crypto assets, though a specific timeline for their launch has not been announced.
NDFs, two-party contracts based on expected future prices but not involving direct asset delivery, will allow clients to hedge or speculate on cryptocurrency prices without the need to hold the underlying assets. This offering is expected to give institutional clients more risk management tools.
Institutional users can choose from multiple custodians, including the bank's own solution and Zodia Custody, when storing their crypto assets. The platform integrates into Standard Chartered's existing infrastructure, using the bank's foreign exchange infrastructure for its operations.
To begin trading, institutions must go through compliance processes with Standard Chartered UK. The bank's focus at this stage is on meeting the growing demand from institutional investors, with no current information on plans to extend these services to retail clients.
As part of its broader digital asset strategy, Standard Chartered has also made investments in trading and tokenization ventures like Zodia Markets and Libeara. Given the strategic nature of these moves, it is likely that further announcements will be made as the market and regulatory environment evolves.
[1] Standard Chartered Receives Approval to Operate a Custody Platform in Luxembourg - Coindesk, [https://www.coindesk.com/business/2021/06/15/standard-chartered-receives-approval-to-operate-a-custody-platform-in-luxembourg/] [2] Standard Chartered Launches Crypto Custody in the United Arab Emirates - Cointelegraph, [https://cointelegraph.com/news/standard-chartered-launches-crypto-custody-in-the-united-arab-emirates] [3] Standard Chartered Offers Bitcoin and Ether Spot Trading to Institutions - Reuters, [https://www.reuters.com/business/finance/standard-chartered-offers-bitcoin-ether-spot-trading-institutions-2021-06-15/] [4] Standard Chartered Plans to Offer Bitcoin and Ether Non-Deliverable Forwards - The Block, [https://www.theblockcrypto.com/linked/100384/standard-chartered-plans-to-offer-bitcoin-and-ether-non-deliverable-forwards]
- Standard Chartered's expansion in the crypto trading sector includes plans to introduce non-deliverable forwards (NDFs) for cryptocurrencies, providing institutional clients with additional risk management tools.
- The digital asset strategy of Standard Chartered encompasses investments in ventures like Zodia Markets and Libeara, reflecting their commitment to crypto trading, technology, and finance.
