Bitcoin Takes Center Stage as Standard Chartered Expands Custody Services in the UAE
Standard Chartered Bank has strengthened its global custody services by expanding into the United Arab Emirates (UAE). The bank announced the extension of its cryptocurrency custody services to the UAE, following regulatory approval from the Dubai Financial Services Authority (DFSA), under the Dubai International Financial Centre (DIFC).
In a statement released on Tuesday, the multinational bank explained that its new financial services would offer institutional investors a secure haven for their crypto assets. This expansion follows a Memorandum of Understanding signed with the DIFC in May 2023.
Custody Services Begin with Bitcoin and Ethereum
According to the announcement, Standard Chartered will initially provide custody services for Bitcoin and Ethereum, the two largest cryptocurrency assets. The bank has also expressed intentions to further expand its cryptocurrency offerings in the near future.
The bank has already secured its first client, Brevan Howard Digital, the cryptocurrency arm of the Jersey-based investment management firm Brevan Howard. This move is part of Standard Chartered’s broader global strategy to embrace cryptocurrencies.
Additionally, the bank announced its plans to establish an over-the-counter trading desk for Bitcoin and Ethereum in London.
UAE’s Growing Role as a Crypto Hub
The launch of Standard Chartered’s custody services is a testament to the UAE’s growing reputation as a global leader in cryptocurrency adoption. The country has fostered a favorable regulatory environment for virtual assets, making it one of the most crypto-friendly nations worldwide.
Countries in the Asia-Pacific region, including the UAE and Hong Kong, are capitalizing on regulatory hurdles in the West to position themselves as global cryptocurrency hubs. The UAE, in particular, has implemented crypto-friendly regulatory frameworks, establishing itself as a destination for digital asset companies.
Read more Bitcoin Surges Above $58,000 Amidst Market Uncertainty: What’s Next for Crypto?
In June, the UAE introduced a regulatory framework for virtual assets, further solidifying its commitment to integrating cryptocurrencies into its economy. The country has also allowed the use of cryptocurrencies for payroll payments, signaling a new era for digital assets within its borders.
Furthermore, Tether announced plans to launch a dirham-pegged stablecoin in partnership with Phoenix Group and Green Acorn Investment, highlighting the UAE’s innovative approach to digital currency.
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