Standard Chartered has officially introduced its digital asset custody service in the UAE, a move that marks a significant development in the financial services sector.
The service has received licensing from the Dubai Financial Services Authority (DFSA) and will operate within the Dubai International Financial Centre (DIFC). This launch follows a memorandum of understanding signed in May 2023.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the importance of this launch, stating:
“The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered, but for the financial services industry. We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.
With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business. Our robust infrastructure, coupled with our expertise in the field, allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem.”
The new service aims to provide secure storage solutions for digital assets, initially focusing on Bitcoin and Ethereum. Standard Chartered’s decision to launch in the UAE was influenced by the region’s balanced approach to digital asset adoption and financial regulation.
Brevan Howard Digital, the crypto division of the global investment management firm Brevan Howard, has been named the first client of the new service. Margaret Harwood-Jones, Global Head of Financing & Securities Services, highlighted the significance of this development:
“After a period of intensive work and close collaboration with regulators both regionally and globally, we are thrilled to welcome Brevan Howard Digital as the first client of our digital asset custody offering.
Our offering goes beyond simple wallet services – it is a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk, and prudential point of view.
It is a game changer for institutional clients, as we can support them with our traditional expertise to navigate the complexities of the digital asset space, without compromising on the highest standards of security.”
Looking ahead, Standard Chartered plans to broaden its custody services to include additional digital assets and is exploring opportunities to extend its services to other major financial hubs around the world.
