Bitcoin
Standard Chartered Launching Bitcoin and Ethereum Trading Desk
Global banking giant Standard Chartered has announced the launch of a trading desk for spot Bitcoin (BTC) and Ethereum (ETH), marking a significant milestone as one of the first global banks to enter the spot cryptocurrency trading market. The new desk will operate from London and be part of the bank’s FX trading unit.
Key Takeaways
- Standard Chartered is one of the first global banks to enter spot cryptocurrency trading.
- The new trading desk will be based in London and part of the bank’s FX trading unit.
- The bank has been working closely with regulators to meet institutional demand for Bitcoin and Ethereum trading.
- Standard Chartered owns stakes in Zodia Custody and Zodia Markets, which offer crypto-related services.
- The move is seen as a significant step towards mainstream adoption of cryptocurrencies.
Standard Chartered’s Bitcoin Push
Standard Chartered’s new trading desk for Bitcoin and Ethereum is a pioneering move in the banking sector. While banks like Goldman Sachs have been trading cryptocurrency derivatives for years, strict regulations have prevented them from dealing directly in the underlying assets. The Basel Committee on Banking Supervision has proposed a 1,250% risk weighting for any unhedged crypto exposure, making direct trading challenging.
“We have been working closely with our regulators to support demand from our institutional clients to trade Bitcoin and Ethereum, in line with our strategy to support clients across the wider digital asset ecosystem, from access and custody to tokenization and interoperability,” the bank said in a statement.
Institutional Bitcoin Adoption
The launch of the trading desk is expected to have a significant impact on the market. Traders reacted positively to the news, with Bitcoin and Ethereum prices showing an immediate uptick. BTC price rebounded by 1%, while ETH price also saw a reversal after initial drops.
Standard Chartered’s involvement in the cryptocurrency space is not new. The bank owns stakes in Zodia Custody and Zodia Markets, which provide services ranging from custody to over-the-counter trading. In November, the bank also launched a blockchain unit called Libeara to help institutions tokenize traditional assets.
The move by Standard Chartered is seen as a significant step towards the mainstream adoption of cryptocurrencies. Industry leaders, including Binance CEO Richard Ten, have welcomed the move, indicating that the pace of mainstream adoption is accelerating. The bank’s comprehensive approach, from custody solutions to institutional trading, positions it well to capitalize on the growing interest in digital assets.
Conclusion
Standard Chartered’s entry into spot cryptocurrency trading marks a pivotal moment in the financial industry. By setting up a trading desk for Bitcoin and Ethereum, the bank is not only meeting the growing demand from institutional clients but also paving the way for broader acceptance and integration of digital assets in traditional finance.
As the market continues to evolve, Standard Chartered’s proactive approach could serve as a model for other financial institutions looking to enter the cryptocurrency space.