Banking giant Standard Chartered has received regulatory approval to offer cryptocurrency custody services in the United Arab Emirates (UAE).
According to a September 10 announcement, Standard Chartered will now offer custody services for firms operating in the Dubai International Financial Centre (DIFC), in collaboration with Brevan Howard Digital, the crypto-focused arm of the asset management firm Brevan Howard.
Standard Chartered’s growing role in crypto
The new offering comes after the bank secured a license from the Dubai Financial Services Authority (DFSA), the dedicated financial regulator for the DIFC.
The service was first announced in 2023, when Standard Chartered signed a memorandum of understanding with the DIFC on May 10.
Bill Winters, Standard Chartered’s group chief executive, said that the new service represents the next phase of the bank’s custody business.
He added that Standard Chartered believes digital assets represent a “fundamental shift in the fabric of finance.”
Initially, the service will offer support for Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, with the bank having plans to expand its custody offerings to include a wider range of crypto assets and extend the service to other global financial hubs.
However, the announcement did not disclose where the bank plans to foray next.
Amidst this backdrop, Standard Chartered has been active in the cryptocurrency sector in recent months.
Last month, the bank partnered with crypto exchange Crypto.com allowing it to offer fiat services across more than 90 countries.
The partnership lets the exchange’s customers deposit and withdraw US dollars, UAE dirhams, and euros.
In June, the bank announced its intention to create a spot trading desk for buying and selling Bitcoin and Ether.
Further, Standard Chartered is also a participant in a stablecoin sandbox led by the Hong Kong Monetary Authority, in partnership with Web3 firm Animoca Brands.
It has also launched Zodia Custody in 2020, a digital asset custodian for institutions, in partnership with Northern Trust.
UAE advances as a crypto hub
The UAE has emerged as a major hub for cryptocurrency and blockchain innovation, with Dubai at the forefront of these developments.
The establishment of the Virtual Assets Regulatory Authority (VARA) in 2022 led to the introduction of the Virtual Assets and Related Activities Regulations a year later, bringing into force a licensing regime for crypto service providers.
Since VARA’s establishment, numerous global firms, such as Binance, OKX, and Bybit, have obtained licenses to operate under its authority.
Dubai’s commitment to a dynamic digital finance ecosystem is bolstered by the DIFC Innovation Hub, a central ecosystem for fintech innovation within the DIFC.
To date, the Hub has attracted over 1,000 growth-stage companies, establishing itself as a key destination for blockchain and crypto activities by offering benefits such as zero percent tax, full foreign ownership, access to funding, and a robust regulatory framework.
Blockchain payments firm Ripple recently announced a strategic partnership with the DIFC Innovation Hub to advance blockchain and digital asset innovation in the UAE using Ripple’s crypto solutions and the XRP Ledger.
At the time of the announcement, Ripple’s CEO, Brad Garlinghouse, described the UAE as one of the “most advanced jurisdictions globally” for regulatory clarity.
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