Standard Chartered Plc Set to Launch Bitcoin & Ether Trading Desk
Earlier today, Bloomberg reported that Standard Chartered Plc is on the verge of launching a trading desk for Bitcoin and Ether.
Overview of Standard Chartered Plc
Standard Chartered is a major international banking group with a unique focus on emerging markets in Asia, Africa, and the Middle East. Founded in 1969, the company has a strong presence in high-growth economies, operating through a network of over 1,000 branches across more than 60 countries. The bank offers services such as personal and business banking, corporate and institutional banking, wealth management, and trade finance, with particular expertise in trade finance, cash management, and foreign exchange.
Standard Chartered’s Entry into Cryptocurrency Trading
- Positioning as a pioneering global bank in the spot cryptocurrency trading market.
- Integration of the new crypto desk into the bank’s foreign exchange trading division.
- Operational base in London.
Bloomberg’s sources reveal that Standard Chartered will be one of the first global banks to directly trade in cryptocurrencies. The new trading desk, set to start operation soon, will be integrated into the existing foreign exchange trading division and headquartered in London.
Regulatory Challenges in the Crypto Space
- Stringent regulations hindering direct cryptocurrency asset trading by banks.
- Basel Committee’s risk weighting for unhedged crypto exposure.
- Challenges faced by banks seeking profitability in the crypto market.
Bloomberg highlights the regulatory challenges faced by banks like Standard Chartered due to stringent regulations, such as the Basel Committee’s risk weighting for unhedged crypto exposure. These challenges have historically prevented banks from directly trading in cryptocurrencies, impacting profitability in this market.
Standard Chartered’s Commitment to Cryptocurrency Trading
- Collaboration with regulators to meet institutional client demand for Bitcoin and Ethereum trading.
- Support for clients in the digital asset ecosystem.
- Ownership stakes in crypto firms Zodia Custody and Zodia Markets.
Standard Chartered affirms its commitment to cooperating with regulators to fulfill institutional client demands for Bitcoin and Ethereum trading. The bank also supports clients in the digital asset ecosystem and has ownership stakes in crypto firms, further solidifying its position in the cryptocurrency space.
Standard Chartered’s Projection for Bitcoin Price
- Raising year-end Bitcoin price forecast from $100,000 to $150,000.
- Prediction of BTC peak at $250,000 in 2025.
- Comparison with gold exchange-traded funds impact on gold prices.
Standard Chartered raised its year-end Bitcoin price forecast and predicts a peak of $250,000 in 2025. The bank draws parallels between Bitcoin and gold ETFs, suggesting that the introduction of spot Bitcoin ETFs in the US could boost Bitcoin’s value, leading to its projected peak and stabilization.
Closing Thoughts
Standard Chartered’s move to launch a Bitcoin and Ether trading desk marks a significant step towards integrating cryptocurrencies into traditional banking operations. The bank’s commitment to working with regulators and supporting clients in the digital asset ecosystem showcases its forward-thinking approach and readiness to adapt to the evolving financial landscape. With its strategic positioning in high-growth markets and innovative ventures in the crypto space, Standard Chartered is poised to play a key role in shaping the future of digital finance.
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