• Standard Chartered to roll out Bitcoin and Ethereum custody services in Dubai through its entity, Zodia Custody.
• The move signals the bank’s shift towards embracing digital assets, backed by the UAE’s favorable crypto regulations.

Dubai – The New Crypto Custody Frontier for Standard Chartered

Pioneering the future of banking, British multinational Standard Chartered PLC is taking a bold step into the realm of cryptocurrency. Come Q1 2024, the financial giant will be extending its portfolio to include custody services for Bitcoin (BTC) and Ethereum (ETH), specifically for their institutional clientele based in Dubai.

Historically, Standard Chartered has maintained a strong foothold in the UAE. Their journey commenced in 1958 with the inauguration of their branch in Sharjah. Their commitment to the region culminated in 2006 when they became the inaugural bank within the Dubai International Financial Centre (DIFC) to secure its own premises. Today, Dubai stands as the bank’s pivotal hub for the Middle East and Africa and also houses its Islamic Banking arm, Standard Chartered Saadiq.

This crypto foray is not without precedent. Earlier in the year, the bank laid the groundwork for this move when it inked a Memorandum of Understanding (MoU) with the DIFC. This partnership aimed to explore the vast expanse of digital assets, with a keen eye on digital asset custody. Having secured the necessary regulatory nods, the stage is now set for the custody service’s debut.

In the words of Waqar Chaudry, Standard Chartered’s executive director of innovation,

“The network effect will gain momentum rapidly as entities like ours step into the arena. This approach promises a more diversified network over the isolated bank systems that some faltering institutions had once constructed for the crypto sector.”

Facilitating this groundbreaking service is Zodia Custody – the bank’s premier institution-first digital asset custodian. It’s worth noting that Zodia Custody recently received In-Principle Approval (IPA) to function as a cryptocurrency broker-dealer within Abu Dhabi’s bustling over-the-counter (OTC) market.

A Strategic Move to the UAE

Standard Chartered’s decision to anchor their crypto services in the UAE is astute. With crypto regulations in the US tightening, several companies in the space are scouting alternative headquarters. The UAE, with its progressive stance on digital assets manifested through its UAE Blockchain Strategy 2021, presents a haven for crypto innovations.

Highlighting the regulatory edge the UAE offers, Chaudry remarks,

“While regions like Singapore and the UAE were proactive in delineating crypto assets, several others lagged in even distinguishing between crypto assets’ security statuses. Hence, we now observe nations like the UAE, Japan, Singapore, and Hong Kong accelerating ahead.”

Backed by the UAE’s licensure, Standard Chartered is not just poised to redefine banking in the region but is also set to offer its avant-garde custody services to clients worldwide.