Standard

Northern

Dubai

The bank’s choice to initiate in Dubai hints at its broader strategy, given its robust operations across Asia, Africa, and the Middle East. Waqar Chaudry, the bank's innovation head, highlighted the strategic advantage of the Dubai International Financial Centre (<a href="https://financefeeds.com/fxpro-completes-relocation-of-mena-office-to-dubai/" rel="noopener noreferrer nofollow">DIFC</a>) as it provides a gateway to offer services globally. With regulatory compatibility in other jurisdictions, the bank could extend its services until it establishes local offerings.
<a href="https://financefeeds.com/blockfills-integrates-with-standard-chartereds-fca-registered-digital-asset-custodian-zodia/" rel="noopener noreferrer nofollow">Zodia Markets</a>, a digital asset marketplace based in London and backed by Standard Chartered Ventures, was also granted In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in <a href="https://financefeeds.com/nomuras-crypto-arm-secures-abu-dhabi-license/" rel="noopener noreferrer nofollow">Abu Dhabi's</a> over-the-counter (OTC) market.
While there's a growing trend among traditional banks to embrace digital assets, Standard Chartered's approach is more nuanced. In the wake of failed systems like Signature Bank’s Signet and the Silvergate Settlement Network, the bank may be eyeing the creation of crypto settlement mechanisms. Such a move would offer improved settlement efficiency and cost management for the institution.
<a href="https://financefeeds.com/standard-chartered-signs-mou-in-dubai-for-digital-asset-custody-offering/" rel="noopener noreferrer nofollow">SC’s custodial services</a>, aimed at institutional clientele, will operate under the umbrella of Zodia Custody. CEO Bill Winters highlighted the balanced approach of the UAE in terms of digital asset adoption and financial regulation, making it an opportune launchpad for the bank's crypto custody endeavors.
“Back in 2018, when places like Singapore and the UAE were busy consulting on crypto assets, some other regions had not even made the distinction between a security and non-security status when it came to crypto assets. For that reason, now we see the difference in maturity in markets where countries like the UAE, Japan, Singapore and Hong Kong are beginning to move faster,” Chaudry said.
The UAE isn’t a new territory for Standard Chartered; it serves as the bank's regional headquarters for the Middle East and Africa. On the regulatory front, Zodia Custody isn't a novice. Originating as a collaboration with Northern Trust, it secured the UK’s FCA nod in 2021 and subsequently received approvals from Irish and Luxembourgish regulatory bodies. Recently, the venture attracted a $36 million investment, led by SBI Holdings.
The In-Principle Approval represents the third step in a five-stage application process. The subsequent phases include obtaining final approval and undergoing an "operational launch" test to ensure the smooth functioning of operations, following ADGM guidelines.
Zodia Markets' decision to enter <a href="https://financefeeds.com/ripple-opens-dubai-office-relocates-swell-global-2023/" rel="noopener noreferrer nofollow">the UAE market</a> is driven by the country's increasing prominence in the digital asset industry. This move will facilitate the participation of institutional investors in the Middle East and Africa in the digital asset space.

Standard Chartered to launch crypto services by early 2024

FinanceFeeds

Other articles published on Oct 18, 2023

Today in Crypto: Swiss Company Puts Excess Energy into Bitcoin Mining, Helix Reveals Pre-Launch F...

Platypus Finance navigates yet another security breach, recovering 90% of stolen assets

Shiba Inu Partner Bad Idea AI Rolls Out Major App Upgrade

Spank & Meech Drop the Mic: $DORKL’s Explosive Musical Revelation Will Shake the Crypto World!

Recent Funding Rounds for Crypto Projects & Companies on Oct 17th

Accept Payments in Tether Cryptocurrency on Your Website

Join our free newsletter for daily crypto updates!