Technology

Standard Chartered launches crypto trading for institutional clients

Financial services firm Standard Chartered launches digital asset brokerage and trading platform.

The platform for UK and European institutional and corporate clients is a joint venture between SC Ventures and BC Group. SC Ventures is Standard Chartered’s innovation unit, while digital asset firm BC Group manages the OSL licensed crypto exchange in Hong Kong.

The joint venture still has no name and its launch remains subject to regulatory approval. The UK-based exchange, which will give access to the crypto markets to institutional traders, is expected to launch in the fourth quarter of 2021.

Booming crypto markets

According to data collected by Standard Chartered, the total trading volume on major exchanges averages over $ 4 billion per day. The data also reported over $ 1 trillion on all crypto assets. With this stock exchange, Standard Chartered intends to position itself in this growing market, particularly with institutional investors.

With this target segment in mind, Standard Chartered hopes to compete with London-based US crypto exchanges Gemini, BitGo and LMAX Digital. He also joins investment banks Morgan Stanley, Goldman Sachs and BNY Mellon among Wall Street names joining in on the action. Several of these lenders revealed their intention to launch cryptocurrency trading desks for clients earlier this year.

JPMorgan already has a dedicated blockchain unit named Onyx and is focused on developing its own JPM Coin token. He is also leading a consortium comprising DBS and Temasek in launching an interbank payment network using blockchain technology.

StanCharts crypto moves

According to Alex Manson, director of SC Ventures, the goal of the new exchange is to enable wider adoption and trading of cryptocurrencies by “the world’s largest and most demanding investors.” Manson added, “We have a firm belief that digital assets are here to stay and will be adopted by the institutional market as a very relevant asset class. Nick Philpott of SC Ventures will become the company’s COO, while BC Group CIO Usman Ahmad will become its CEO.

Standard Chartered has already made strides in cryptocurrencies. For example, in December, she launched the Zodia Custody institutional custody service through a strategic partnership with Northern Trust. Last July, it also took a stake in blockchain technology provider Metaco, blockchain-based cross-border money transfers with central banks in Thailand and Hong Kong.

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