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Standard Chartered has advanced its cause for global custody offering with its latest push into the UAE.
Standard Chartered announced it expanded its crypto custody service to the United Arab Emirates (UAE) after gaining regulatory approval in the country. The Dubai Financial Services Authority (DFSA) granted the multinational bank license under the Dubai International Financial Centre (DIFC).
In a press release on Tuesday, Standard Chartered stated that its new financial services would provide institutional investors with a safe haven for their crypto assets. The bank signed a memorandum of understanding with the DIFC in May 2023.
Custody to Debut with Bitcoin and Ethereum
Per the announcement, Standard Chartered would initially offer institutions custody for the two largest crypto assets, Bitcoin and Ethereum. The institution is expected to expand its crypto offering in the future.
Standard Chartered has already secured its first client after noting that it will provide digital asset custody for Brevan Howard Digital. The firm is the crypto arm of Jersey-based investment management firm Brewan Howard.
Notably, Standard Chartered’s custody debut in the UAE is its latest push for global adoption of cryptocurrencies. The multinational financial institution announced it will launch a spot trading desk for Bitcoin and Ethereum in London.
Standard Chartered’s custody launch reflects a broadening adoption of digital assets in the UAE, which ranks among the countries with the most conducive environment for virtual currencies globally.
UAE Continues Its Crypto Hub Push
A few countries in the Asian Pacific region are taking advantage of the regulatory hurdles in the West to establish themselves as global cryptocurrency hubs. Among them are the UAE and Hong Kong.
Particularly, the UAE has created a conducive environment for digital asset firms through its crypto-friendly regulatory guidelines. The UAE established a regulatory framework for virtual assets in June and has allowed the use of these currencies within its borders.
Recently, a UAE court recognized cryptocurrency as a means of salary payment, setting a new utility for crypto assets within its borders. Tether also announced it would launch a dirham-pegged stablecoin in partnership with conglomerate firm Phoenix Group and Green Acorn Investment.