As a researcher with extensive experience in the financial industry and a keen interest in cryptocurrencies, I believe that Standard Chartered’s decision to introduce a trading desk for Bitcoin and Ether is a bold move that could pay off in the long run. While regulatory challenges remain, the bank is taking a proactive approach by working closely with regulators and institutional clients to facilitate Bitcoin and Ethereum trading.
The UK-based multinationals banking giant, Standard Chartered Plc, intends to establish a trading desk for Bitcoin and Ether, making it among the pioneering global banks embracing direct cryptocurrency transactions.
Based on the Bloomberg article I’ve reviewed, I’ll be working within the bank’s Foreign Exchange (FX) trading division, specifically in setting up a new trading desk stationed in London.
Previously, numerous financial institutions, including Goldman Sachs Group Inc., limited their cryptocurrency engagements solely to derivative products, despite having a lengthy history in this field. This was primarily because of rigorous laws that prohibited them from directly handling the underlying digital assets.
The Basel Committee on Banking Supervision proposes assigning a risk weight of 1,250% to unhedged cryptocurrency holdings for banks, significantly increasing the challenge of earning profits.
The bank is collaborating closely with regulators representing its major clients in order to make it easier for Bitcoin and Ethereum trading. At the same time, they are committed to providing their clients with a comprehensive range of services related to digital assets, such as access, custody, tokenization, and interoperability.
In spite of facing regulatory hurdles, Standard Chartered stands out among larger banks for its increasing involvement in the crypto sector, spurred by growing institutional client interest. The bank has made strategic investments in Zodia Custody and Zodia Markets, expanding its offerings from custody services to over-the-counter trading.
In November, the bank introduced Libeara, a blockchain initiative geared toward asset tokenization. Currently, Libeara is assisting in the establishment of a fund for tokenized government bonds denominated in Singaporean dollars.
Despite a nearly 20% decrease in Bitcoin’s value since early 2024 and reaching its lowest point since May 15th, Standard Chartered intends to initiate their Bitcoin trading desk.
In spite of various challenges, the achievement of Bitcoin ETFs’ approval and launch for US investors in January has significantly enhanced market fluidity. Consequently, this development has attracted an increased number of large-scale institutions towards the digital asset sector.
Read More
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- XRP Price Eyes $2 Support Level Amidst Market Correction
- PYTH PREDICTION. PYTH cryptocurrency
- OREO Unveils Six New Products for 2025
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
- Russell T Davies Says He “Kind Of Hopes” The Streaming Bubble Will “Pop”
- Apple Lands Anya Taylor-Joy Led Drama ‘Lucky,’ Based on Bestseller
- Paul Atkins to Replace Gary Gensler as Next SEC Chair?
- Crypto VC funding roundup: Riot snags over $594m, BVNK raises $50m
- Google’s Willow Quantum Chip Sparks Bitcoin Security Debate
2024-06-21 15:48