Standard Chartered has expanded its crypto custody services to the UAE after receiving approval from the Dubai Financial Services Authority.
Standard Chartered has announced the expansion of its crypto custody service to the United Arab Emirates (UAE) following the acquisition of regulatory sanction in the country. The multinational bank was granted a license by the Dubai Financial Services Authority (DFSA) under the Dubai International Financial Centre (DIFC).
Standard Chartered announced in a press release on Tuesday that its new financial services would offer institutional investors a secure environment for their crypto assets. In May 2023, the bank executed a memorandum of understanding with the DIFC.
Custody to Make Its Debut with Bitcoin and Ethereum
Standard Chartered would initially provide institutions with custody for the two largest crypto assets, Ethereum and Bitcoin, as stated in the announcement. It is anticipated that the institution will increase its cryptocurrency offerings in the future.
Standard Chartered has already secured its first client by announcing that it will provide digital asset custody for Brevan Howard Digital. Brewan Howard, an investment management firm headquartered in Jersey, operates the crypto arm of the organization.
It is worth noting that Standard Chartered’s custody debut in the UAE is the latest effort to promote the global adoption of cryptocurrencies. The multinational financial institution has announced the establishment of a spot trading desk in London for Bitcoin and Ethereum.
The UAE’s adoption of digital assets is expanding, and Standard Chartered’s custody launch is indicative of this trend. The UAE is one of the most favorable countries in the world for virtual currencies.
The UAE Persists in its Efforts to Establish a Crypto Hub
A few countries in the Asian Pacific region are capitalizing on the regulatory obstacles in the West to establish themselves as global cryptocurrency centers. Hong Kong and the United Arab Emirates are among them.
The UAE has established a regulatory framework that is particularly favorable to digital asset firms, as evidenced by its crypto-friendly policies. In June, the United Arab Emirates implemented a regulatory framework for virtual assets and has permitted their use within its borders.
Recently, a UAE court recognized cryptocurrency as a means of salary payment, setting a new utility for crypto assets within its borders. Tether also announced it would launch a dirham-pegged stablecoin in partnership with conglomerate firm Phoenix Group and Green Acorn Investment.
