Standard Chartered has received permission from the Dubai Financial Services Authority (DFSA) to launch its digital asset custody service.
Banking conglomerate Standard Chartered has launched its digital asset custody service in the Dubai International Financial Centre (DIFC) free zone after receiving licensure from the Dubai Financial Services Authority (DFSA), the free zone’s regulator. The service, brought in partnership with hedge fund Brevan Howard’s digital asset custody vertical, Brevan Howard Digital, will service BTC and ETH for now. However, it will expand to embrace more crypto assets in the future and move to offer the services in other jurisdictions.
This news does not catch many by surprise as Standard Chartered announced it over a year ago as it had signed a memorandum of understanding (MoU) with the DIFC. That has transpired into full-blown licensing much over a year later.
Regarding the capabilities of this service, Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, said, “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.” Brevan Howard Digital CEO Gautam Sharma added, “Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption.”
Furthermore, Bill Winters, Group Chief at Standard Chartered, iterated on the importance of the bank’s journey into the digital asset industry, calling this a pivotal moment for the multinational bank and financial services industry. “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.”
Standard Chartered has been aggressively making moves in the digital asset industry, reflecting Winters’ statement. It partnered with Animoca Brands to participate in Hong Kong’s stablecoin sandbox. It has also joined hands with Crypto.com to provide fiat withdrawal and deposit capabilities in 90 countries.
UAE Leads Crypto Adoption
In the meantime, the UAE has grown to become one of the best jurisdictions for crypto. Henley & Partners ranked the country first in its Crypto Adoption Index 2024.
