Standard Chartered Bank Ventures into Bitcoin Spot Trading with New Desk

• Standard Chartered has announced its plan to launch a new spot trading desk for Bitcoin and Ethereum, as reported by Bloomberg.
• This marks a significant step, as few global banks have ventured into direct trading of leading cryptocurrencies amidst stringent regulatory environments.
• “We are thrilled to offer our clients direct trading capabilities for Bitcoin and Ethereum,” a spokesperson said, highlighting the bank’s forward-thinking approach.

Standard Chartered is pioneering among global banks by launching a Bitcoin and Ethereum spot trading desk, offering direct access to these leading cryptocurrencies for institutional clients.

Innovative Crypto Trading Desk by Standard Chartered

Standard Chartered Bank has integrated its latest trading desk into its forex (FX) trading unit, stationed strategically in London, known as a principal node of global finance. This new operation, set to commence soon, will make Standard Chartered one of the first major financial institutions to facilitate spot trading for Bitcoin and Ethereum, distinguishing itself from the widely prevalent crypto derivatives trading.

Meticulous Planning and Regulatory Engagement

The bank’s decision is the culmination of extensive strategic planning and ongoing discussions with regulatory bodies. In an official release, Standard Chartered asserted, “We have engaged deeply with regulators to align with our institutional clients’ growing interest in trading Bitcoin and Ethereum. This aligns with our broader strategy to support the digital asset ecosystem, including aspects like access, custody, tokenization, and interoperability.”

Broader Digital Assets Strategy

This launch is not Standard Chartered’s first engagement with digital assets. The bank has previously invested in infrastructure projects such as Zodia Custody and Zodia Markets, which offer digital asset custody and sophisticated over-the-counter trading services. These efforts underscore the bank’s commitment to fostering a comprehensive digital asset ecosystem.

Tokenization and Blockchain Initiatives

Expanding further into blockchain technology, Standard Chartered established Libeara, an innovative unit dedicated to helping institutional clients tokenize traditional assets. One prominent project under Libeara is the development of a tokenized government bond fund in Singaporean dollars, exemplifying the bank’s integration of blockchain solutions with conventional finance.

Market Predictions and Insights

Standard Chartered’s engagement with the crypto market extends beyond operations to robust market analysis. Geoffrey Kendrick, the bank’s head of emerging markets research, recently projected a bullish outlook for Bitcoin, suggesting that the cryptocurrency could surge to $100,000 by the upcoming US presidential election and possibly reach $150,000 with a Trump victory.

Long-Term Bitcoin Projections

Looking further ahead, Kendrick forecasts Bitcoin reaching up to $200,000 by the end of 2025. He attributes this expectation to continued strong inflows into newly launched Bitcoin spot ETFs, which he believes will appeal to large-scale, long-term investors like pension funds.

Conclusion

Standard Chartered’s establishment of a spot trading desk for Bitcoin and Ethereum showcases its proactive stance in embracing the digital asset space. This strategic move not only meets the growing institutional demand for direct crypto trading but also signals a larger trend of integration between traditional finance and burgeoning digital assets. With its comprehensive approach, Standard Chartered is setting a precedent for other global financial institutions to follow.