Standard Chartered launches Bitcoin and Ethereum trading desk in London! 🚀🌟

Standard Chartered Bank to Launch Bitcoin and Ethereum Trading Desk in London

Standard Chartered, a British multinational bank, is making moves to launch a trading desk for Bitcoin and Ethereum in London. This initiative will position the bank as one of the first global players to venture into spot crypto trading, following the approval of spot Bitcoin and Ethereum Exchange Traded Funds (ETFs) in the United States.

The Details

The new crypto trading desk at Standard Chartered will operate within the Forex trading unit.
Reports suggest that the trading desk will kick off operations soon, according to two sources familiar with the matter.
The bank has been collaborating with regulators to meet the demands of its institutional clients interested in trading Bitcoin and Ethereum.

Standard Chartered’s Foray Into Digital Assets

Standard Chartered owns a stake in Zodia Custody, an institutional crypto custodian, and has supported Zodia Markets, an institutional digital asset trading firm.
Establishing a spot crypto trading desk affirms the bank’s deeper engagement with digital assets beyond mere investments.

Industry Insights

While some banks have traded crypto derivatives, regulations have limited them from trading the actual asset directly.
Goldman Sachs, for instance, began trading Bitcoin futures in 2020 and later launched its Bitcoin derivative trading desk in 2021.

Regulatory Landscape

The Basel Committee, responsible for setting global banking standards, advised banks to maintain a 1,250% risk weighting for trading crypto assets to mitigate investment risks.
This stringent requirement has posed challenges for banks looking to profit from cryptocurrency trading.

Standard Chartered’s Crypto Projections

Standard Chartered has expressed optimism about the future of cryptocurrencies, anticipating all-time highs for Bitcoin and Ethereum.
The bank foresees approval of Solana and XRP ETFs in the U.S. market, although this may materialize more significantly in 2025.

Conclusion

As Standard Chartered dives deeper into the crypto realm with its planned trading desk, the financial landscape may witness more traditional institutions embracing digital assets for trading and investment purposes.