Bitcoin
Standard Chartered to launch spot trading desk for Bitcoin and Ethereum
Standard Chartered, a British multinational bank, is planning to launch a spot trading desk for two of the world’s largest cryptocurrencies – Bitcoin (BTC) and Ethereum (ETH).
Bloomberg, citing sources familiar with the matter, reported today that the next spot trading desk is close to starting operations at the bank’s foreign exchange trading unit in London. Consequently, the move would make Standard Chartered one of the first global banks to venture into cryptocurrency spot trading.
According to the report, the spot trading desk will serve institutional investors seeking direct exposure to BTC and ETH.
Collaboration with regulators
It is worth noting that several multinational banks, such as Goldman Sachs, have been offering crypto derivatives trading to institutional clients. However, strict regulations prevented these banks from dealing directly with the underlying assets.
In particular, the Basel Committee on Banking Supervision proposal requires banks to apply a high-risk weight of 1,250% to uncovered exposure to cryptocurrencies. This requirement makes it difficult for banks to earn profits through spot trading.
However, sources suggest that Standard Chartered is determined to launch its spot trading desk for BTC and ETH.
In an email statement sent to Bloomberg, Standard Chartered revealed that it is collaborating with relevant regulators to meet the crypto trading demands of its institutional clients.
According to Standard Chartered, the upcoming trading desk is aligned with its broader digital asset strategy, covering access, custody, tokenization and interoperability.
Standard Chartered Expands Involvement in Crypto
Amid growing interest in cryptocurrencies among institutional investors, Standard Chartered has been expanding its presence in the cryptocurrency market. Previously, it invested in two crypto companies: Zodia Markets and Zodia Custody.
Last year, it established Libeara, a blockchain unit focused on helping institutions tokenize traditional assets. The Singapore government is leveraging the drive to develop a tokenized bond denominated in Singapore dollars.
With Standard Chartered planning to launch a spot trading desk for BTC and ETH, the bank would further expand its involvement in the crypto market.
Standard Chartered’s latest foray into the spot trading sector comes amid massive volatility in the crypto market. At the current price of $63,571, BTC is down 8.8% on the monthly chart. Similarly, ETH, which was priced at $3,460 at press time, has plummeted 6% over the same period.
Meanwhile, the bank foreseen that ETH could cost $8,000 if BTC eventually reaches the projected target of $150,000 by the end of 2024.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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