The head of HSCB, one of the world’s largest banking and financial service organization, announced that it would not expand into cryptocurrencies. The bank Standard Chartered reacted immediately to the statement of its rival lender. As HSBC won’t offer clients access to cryptocurrencies, Standard Chartered will be then to support the crypto community. The bank will launch a cryptocurrency exchange and brokerage joint venture.
Standard Chartered – one of the biggest banks in the world
Crypto enthusiasts wait for the launch of the crypto platform in the fourth quarter of 2021. Standard Chartered is a British international financial conglomerate. Its network has about 1,200 branches and affiliates in more than 70 countries. Though Standard Chartered is based in the UK, about 90% of revenue comes from the markets of Asia, Africa and the Middle East. It is one of the largest banks in the world. Standard Chartered shares are listed on the London, Hong Kong and Mumbai stock exchanges.
The digital platform for UK and European corporate clients
Standard Chartered is to create a digital exchange platform and asset brokerage for UK and European corporate and institutional clients. The platform will be under the control of a joint venture between Standart Chartered’s innovation unit SC Ventures and BC Group that operates Hong Kong-licensed crypto exchange OSL. OSL is a cryptocurrency trading platform, OTC trading service and prime broker registered with the Hong Kong Securities and Futures Commission. The new platform is going to target the European market connecting institutional traders with counterparts trading cryptocurrencies.
Digital market will be adopted by the institutional market
Alex Manson, a global head of transaction banking SC Ventures, says:
“We have a strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class. We are constructing the building blocks for a safe and reliable investment infrastructure: on the back of Zodia Custody, which will ensure safe and compliant custody for institutional investors, the new company will provide a brokerage and exchange platform to enable safe adoption and trading by the world’s largest and most demanding investors.”
Standard Chartered’s experience with crypto
These are not the first steps toward the cryptocurrency world made by Standard Chartered. It has already made several advances into cryptocurrencies. One of the main measures is including launching an institutional custody service Zodia Custody through a strategic partnership with Northern Trust in December. In addition, the company took a stake in blockchain technology provider Metaco in July. Standard Chartered has been working with central banks in Thailand and Hong Kong to explore blockchain-based cross-border money transfers.
Standard Chartered’s rivals
The move sets Standard Chartered as a rival to some of the world’s biggest institutional crypto exchanges. These are just some of them the Winklevoss twins’ Gemini, BitGo and London-based LMAX Digital. For instance, Gemini has been on the market since 2014. It’s a private digital asset exchange, which offers custodian services for digital holdings.
There’s no surprise for active interest in cryptocurrency moves. Institutional and corporate investors have got involved into the crypto space this year. Bitcoin and other cryptocurrencies did blow up the market with their rise. Data collected by Standard Chartered showed the total volume of trading on major exchanges averages over $4bn per day as of this month, with a total market capitalization of over $1trn of all cryptoassets. Impressive, isn’t it?