Standard Chartered announced today (Tuesday) that it has started offering digital asset custody services in the United Arab Emirates. Brevan Howard Digital, the digital asset division of the British hedge fund, is the first client to use these services.

Bank Chooses UAE for Launch

The bank said it chose the UAE for this launch due to the country's balanced approach to digital asset adoption and financial regulation. The UAE has been actively working to attract major crypto firms, including Binance and OKX. It is also developing regulations for virtual assets to boost economic competition in the Gulf region.

"Standard Chartered's global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption," Brevan Howard Digital's CEO Gautam Sharma said in a joint statement.

UAE Attracts Hedge Funds

In addition to crypto firms, the UAE has attracted significant hedge funds. Brevan Howard opened an office in Abu Dhabi in February last year. Other hedge funds such as Millennium Management, ExodusPoint Capital Management, and BlueCrest have also established a presence in the UAE.

Standard Chartered is expanding its involvement in the crypto sector as institutional investors increasingly adopt digital assets. The bank supports two crypto firms, Zodia Markets and Zodia Custody, which offer a range of services including custody and trading.