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Standard Chartered has launched its digital asset custody service in the UAE, according to a recent announcement from the bank.
The service, licensed by the Dubai Financial Services Authority (DFSA), operates within the Dubai International Financial Centre (DIFC). The launch follows a memorandum of understanding signed in May 2023.
The service initially aims to provide secure storage for digital assets, starting with Bitcoin and Ethereum. The bank stated that it chose the UAE as the launch location due to the country's approach to digital asset adoption and financial regulation.
Brevan Howard Digital, a crypto-focused subsidiary of investment firm Brevan Howard, has been announced as the service's first client.
Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, noted the increasing institutional interest in Bitcoin and cryptocurrencies.
Harwood-Jones emphasized that the service offers more than simple wallet management, providing a solution designed to address the regulatory and risk challenges associated with digital asset custody.
Standard Chartered also indicated plans to expand its custody services to cover additional digital assets and explore opportunities to launch in other global financial centers.
The bank's statements present digital assets as a growing part of the financial landscape, though it remains to be seen how these developments will impact the broader financial industry.