Standard Chartered Takes a Major Leap into Cryptocurrency Trading for Institutional Clients

Standard Chartered Embraces Bitcoin with Latest Client Offerings

In a groundbreaking move, Standard Chartered has announced the launch of spot trading for Bitcoin and Ethereum for its institutional clients. This decision marks a significant milestone in the adoption of cryptocurrencies by traditional financial institutions.

As part of this initiative, Standard Chartered will offer its clients access to trade these digital assets through its existing forex trading platform. The bank emphasized that this move is fully integrated with its existing platforms, allowing users to seamlessly access and trade cryptoassets via familiar FX interfaces.

This development makes Standard Chartered the first global systemically important bank to provide a wide range of cryptocurrency trading support for corporate clients, investors, and asset managers. Furthermore, the bank has also hinted at introducing derivatives for these assets in the near future, enabling traders to speculate or hedge against price action without directly owning the underlying asset.

This announcement is not entirely surprising, given Standard Chartered’s existing involvement in the crypto space through its subsidiaries Zodia Markets and Zodia Custody. Notably, Zodia Markets allows users to trade over 70 cryptocurrency assets. Bill Winters, Chief Executive of Standard Chartered, praised this move, stating that it enables new pathways for innovation and inclusivity. He emphasized that as client demand accelerates further, the bank wants to provide clients with a secure and efficient means to transact, trade, and manage digital asset risk within regulatory requirements.

The crypto market has witnessed remarkable integration with traditional finance (TradFi) since early 2024. A significant turning point was the U.S. approval of spot Bitcoin ETFs in January 2024, solidifying its mainstream acceptance. The subsequent approval of Ethereum ETFs in July further cemented the sector’s legitimacy. Other jurisdictions have followed suit, with Hong Kong and the UK making moves to create regulatory frameworks and similar products.

In response to these developments, Standard Chartered’s move could encourage other financial institutions like Citi, Goldman Sachs, and HSBC to follow suit. In fact, some influential wirehouses like JP Morgan already support Bitcoin ETFs and accept them as loan collateral. As institutional adoption grows, it is likely that cryptocurrency will be perceived as a legitimate asset class.

In conclusion, this move by Standard Chartered marks an important milestone in the mainstreaming of cryptocurrencies.

Source: ambcrypto.com