Standard Chartered is making a significant move into the cryptocurrency market by establishing a spot trading desk for Bitcoin and Ether. This will position the British bank as one of the first global financial institutions to directly trade the underlying assets of cryptocurrencies, rather than just dealing in derivatives.
According to sources familiar with the matter, the new crypto desk is on the verge of launching and will be integrated into the bank’s foreign exchange (FX) trading unit. It will operate from London, marking a key step in Standard Chartered’s push to deepen its involvement in the growing digital assets market. While the exact timing of the launch is yet to be confirmed, it is understood that the desk will focus on the spot trading of the two largest cryptocurrencies by market capitalisation—Bitcoin and Ether.
Historically, banks such as Goldman Sachs have traded cryptocurrency derivatives for years. However, strict regulatory frameworks have made it difficult for them to engage in direct trading of cryptocurrencies. The Basel Committee on Banking Supervision has proposed a stringent set of rules for crypto-related activities, including a 1,250% risk weighting for unhedged crypto exposures, which poses significant challenges to banks seeking to profit from direct involvement in digital assets.
Despite these regulatory hurdles, Standard Chartered appears undeterred. In an email statement, the bank confirmed that it has been working closely with regulators to meet the growing demand from institutional clients for access to Bitcoin and Ethereum. The bank’s statement read: “We have been working closely with our regulators to support demand from our institutional clients to trade Bitcoin and Ethereum, in line with our strategy to support clients across the wider digital asset ecosystem, from access and custody to tokenization and interoperability.” However, the bank declined to comment further on the specifics of the new trading desk.
This move is part of Standard Chartered’s broader strategy to deepen its engagement with the digital assets space. The bank has already made significant strides by acquiring stakes in two crypto firms—Zodia Custody and Zodia Markets—which provide services such as custody and over-the-counter (OTC) trading for digital assets. These investments highlight the bank’s commitment to serving institutional clients seeking a range of services within the crypto ecosystem.
In November, Standard Chartered further strengthened its crypto credentials with the launch of a blockchain unit called Libeara. The unit focuses on helping institutions tokenize traditional assets, such as government bonds, in line with the growing trend of tokenisation. Libeara is currently supporting the creation of a tokenized government bond fund, denominated in Singaporean dollars, which will be an important step in the evolution of digital asset infrastructure.
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Standard Chartered’s entry into spot crypto trading marks a notable shift in the traditional banking sector’s approach to cryptocurrencies. While institutional adoption of digital assets has been on the rise, many large financial institutions have been cautious about directly handling cryptocurrencies due to regulatory uncertainty and concerns about market volatility. However, with increasing demand from institutional clients and the growing acceptance of digital assets as part of the global financial system, Standard Chartered’s move could pave the way for other major banks to follow suit.
The bank’s decision to focus on Bitcoin and Ether reflects the continued dominance of these two cryptocurrencies in the market. Bitcoin, often referred to as digital gold, has remained the largest cryptocurrency by market capitalisation, while Ether plays a critical role in supporting the Ethereum blockchain, which is the foundation for many decentralised applications and smart contracts.
Despite the challenges posed by regulatory scrutiny, Standard Chartered’s entry into the spot crypto market demonstrates the growing recognition of the role digital assets are likely to play in the future of finance. The move is also a clear indication that the bank is positioning itself to capitalise on the increasing institutional demand for cryptocurrency services.
As the regulatory environment continues to evolve, it will be interesting to see how other global banks respond to the growing opportunities within the crypto market. For now, Standard Chartered is firmly staking its claim as one of the leading traditional financial institutions embracing the digital asset revolution.
