Standard Chartered Bank Introduces Digital Custody Service for Cryptocurrencies in the UAE

The Rise of Digital Custody in the UAE

As the crypto market evolves, banks are keenly exploring services related to virtual digital assets (VDAs). Standard Chartered, based in London, has recently initiated a digital custody service in the UAE focusing initially on Bitcoin and Ether. This launch caters specifically to UAE clients, reflecting the region's favorable regulatory stance on crypto.

Strategic Launch Amid Regulatory Clarity

The UAE's clear regulatory framework has provided a conducive environment for Standard Chartered to roll out its new service. According to the bank, this offering represents a critical milestone in their service portfolio. Bill Winters, Group Chief Executive, emphasized that digital assets represent a transformative wave in finance, asserting, "Digital assets are not merely a passing trend."

A Comprehensive Approach to Digital Asset Custody

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stressed that the new service goes beyond basic wallet functionalities. While details were limited, she noted that it addresses the specific custody challenges from regulatory, risk, and prudential perspectives. This new offering is expected to significantly benefit institutional clients as they navigate the complexities of digital assets.

Inaugural Client and Future Prospects

As part of its roll-out, Brevan Howard Digital, the crypto arm of the investment management platform, has been secured as the first client for this UAE-focused service. This move follows a memorandum of understanding signed with the Dubai International Financial Centre in 2023, alongside acquiring regulatory licensing from the Dubai Financial Services Authority (DFSA).

Broader Trends in the Crypto Sector

Other major banking institutions, including Deutsche Bank AG, HSBC, and Goldman Sachs, are also looking into crypto services. With the UAE's VARA regulations, established in 2022, providing a solid framework for crypto operations, the region is becoming increasingly attractive for Web3 initiatives.