Melker Bengtsson
TL;DR
-
Standard Chartered will offer Bitcoin and Ether trading to select individuals in the UAE using their existing bank accounts
-
Settlement and custody are both handled by the bank; they call it a closed-loop model and no separate wallet is necessary
-
The service will first be offered to clients considered professional investors and gradually roll out to more markets
-
Previously offered to institutional clients in the UK and UAE, this is the first time it’s been extended to individual investors
Standard Chartered will offer Bitcoin and Ether trading to select individuals in the United Arab Emirates using their existing bank accounts. This is the first time they’ve offered this service anywhere. The bank is licensed by the Dubai Virtual Assets Regulatory Authority, VARA.
They say they’re the first international bank to offer this service to customers in the UAE. The service will first be offered to clients considered professional investors and gradually roll out to more markets.
Trading Inside the Bank Account
With the assets being part of customers' bank accounts, just like any asset they hold, no separate wallet is necessary. Settlement and custody are both handled by the bank; they call it a closed-loop model and, according to the bank, it mitigates third party risk.
To create this solution, Standard Chartered has partnered with Zodia Markets, a crypto brokerage backed by the bank's VC unit: SC Ventures. While they already offered their customers ETF trading, this gives them an opportunity to trade spot.
Samir Subberwal, Global Head, Wealth Solutions, Retail Products, Data & Analytics at Standard Chartered, commented in a press release:
As client interest in digital assets continues to grow, this launch represents a significant milestone for Standard Chartered as we bring digital assets into our core wealth offering.
From Institutions to Individuals
Standard Chartered has previously offered this service to institutional clients in several markets, including the UK and UAE but this is the first time it’s been extended to individual investors. The bank splits their markets into four wealth hubs, of which the UAE is one and that’s one reason they’ve launched here rather than in Singapore or Hong Kong.
Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan, said:
We are proud to be the first international bank in the UAE to launch a cryptocurrency trading offering. The UAE was a natural choice for this launch, given the country’s forward-looking approach to innovation, strong regulatory environment and growing leadership in digital assets.
Crypto is growing as a bank product. Standard Chartered says they’re expanding their crypto offering. For example, they’re extending their institutional custody business into Singapore by year-end. It’s likely the UAE was first to offer this to individuals as a first go at getting licensed, with Singapore and Hong Kong being next.
