Standard Chartered, a leading multinational bank, has officially launched digital asset custody services in the United Arab Emirates (UAE), aiming to provide secure storage solutions for bitcoin.
The bank’s entry into this market marks a significant step in the growing adoption of digital assets in the region and highlights the increasing demand for regulated, institutional-grade custody services for bitcoin.
The bank announced on September 10 that it had received approval from the Dubai Financial Services Authority (DFSA) to offer these services.
The digital asset custody service is offered for Bitcoin and Ethereum, and is being launched in partnership with Brevan Howard Digital, the digital asset division of the hedge fund Brevan Howard.
Standard Chartered has long been active in the digital asset space, but this move into the UAE represents a significant expansion of its services. The decision to start in the UAE is no coincidence.
The country has established itself as a global leader in digital asset adoption and regulation. According to a study by Henley & Partners, the UAE ranks third worldwide in adopting digital assets, following closely behind Singapore and Hong Kong.
Bill Winters, the Group Chief Executive of Standard Chartered, emphasized the importance of this move, stating:
“We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance […] 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.”
The UAE has become an attractive destination for businesses in the digital asset sector due to its favorable regulatory environment and strong commitment to innovation.
The Dubai International Financial Centre (DIFC), a special economic zone in Dubai, has played a crucial role in this transformation by creating a supportive ecosystem for financial innovation.
Related: Dubai to Build World’s First “Bitcoin Tower”
The approval from the DFSA, the DIFC’s dedicated financial regulator, followed a Memorandum of Understanding (MoU) signed in May 2023 between Standard Chartered and the DIFC.
This agreement laid the groundwork for the launch of digital asset custody services in the UAE, signaling the bank’s commitment to expanding its footprint in the region.
Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, noted:
“This announcement demonstrates the growing institutional interest in digital assets and the critical need for secure, regulated custody solutions.”
Notably, in August, the bank teamed up with Crypto.com to provide fiat services to over 90 countries, starting with the UAE. These partnerships underscore Standard Chartered’s strategy to position itself as a key player in the evolving digital asset market.
Gautam Sharma, CEO of Brevan Howard Digital, expressed his enthusiasm for the partnership, describing it as pivotal for the UAE and digital asset markets. He added that Standard Chartered’s reputation “adds a layer of credibility that is meaningful for institutional adoption.”
The launch of Standard Chartered’s bitcoin custody services in the UAE reflects the rising demand for secure, regulated solutions in the digital asset sector. As more institutional investors enter the market, the need for reliable custody services has become increasingly important.
Bill Winters emphasized the significance of this development, calling it “a pivotal moment not just for Standard Chartered, but for the financial services industry.” He noted that the bank is strategically positioning itself at the forefront of this next evolution in the custody business.
The new service aims to address the regulatory, risk, and security needs of institutions by offering a solution that goes beyond simple custody.
Harwood-Jones highlighted that their solution integrates prudential standards, describing it as “a game changer” for institutional clients navigating the digital asset sector.
She added, “After a period of intensive work and close collaboration with regulators both regionally and globally, we are thrilled to welcome Brevan Howard Digital as the first client of our digital asset custody offering.”
Harwood-Jones emphasized that their service is more than just a wallet—it offers a complete solution for digital asset custody, addressing regulatory needs, risks, and prudential challenges.
She emphasized that this approach is transformative for institutional clients, as it combines traditional expertise with top-tier security to help them navigate the complexities of the digital asset space.
The UAE’s position as a global leader in digital asset adoption is further reinforced by this development.
The country continues to attract major players in the Bitcoin space, including Binance and OKX, as well as significant hedge funds like Brevan Howard, Millennium Management, ExodusPoint Capital Management, and BlueCrest.
As the UAE continues to develop its digital asset regulation and attract new forms of business, Standard Chartered’s launch of digital asset custody services is a testament to the country’s growing influence in the global digital asset market.
The bank’s move is expected to pave the way for further growth and innovation in the sector.
