Standard Chartered Plc, a British multinational bank, is preparing to introduce a trading desk for Bitcoin and Ethereum, positioning itself as one of the first global banks to engage in spot cryptocurrency trading.
As per the Bloomberg report, the new trading desk will be part of the bank’s FX trading unit and will operate from London.
In the past, many banks like Goldman Sachs Group Inc. restricted their cryptocurrency activities to derivatives due to stringent regulations preventing direct involvement with the underlying assets.
The Basel Committee on Banking Supervision has suggested that banks burden any unhedged cryptocurrency exposure with a risk weighting of 1,250%, which would make profit generation more difficult.
The bank said that they are working closely with regulators from their institutional clients to facilitate Bitcoin and Ethereum trading while supporting clients across the digital asset ecosystem, including access, custody, tokenization, and interoperability.
Despite these regulatory challenges, Standard Chartered is one of the larger banks moving deeper into crypto driven by institutional client demand. The Bank has also invested in the Zodia Custody and Zodia Markets, giving services from custody to over-the-counter trading.
In November, the bank launched Libeara, a blockchain united aimed at tokenizing traditional assets. Libeara is currently aiding the creation of a tokenized government bond fund using the Singaporean dollar.
Even though Bitcoin has dropped over 20% since early 2024 and hit its lowest level since May 15, Standard Chartered is planning to launch the trading desk.
Despite Bitcoin’s price drop, the successful launch of US Bitcoin exchange-traded funds in January has improved market liquidity, encouraging more large institutions to enter the digital asset space.
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