Standard Chartered Bank Plans to Launch Spot Trading Desk for Bitcoin and Ethereum
Standard Chartered, a British multinational bank, is reportedly planning to launch a spot trading desk for two of the world’s largest cryptocurrencies – Bitcoin (BTC) and Ethereum (ETH).
The upcoming spot trading desk is nearing operational status within the bank’s foreign exchange trading unit in London. This move positions Standard Chartered as one of the first global banks to venture into spot cryptocurrency trading.
According to the report, the spot trading desk will cater to institutional investors seeking direct exposure to BTC and ETH. It is worth noting that many multinational banks, such as Goldman Sachs, offer crypto derivative trading to institutional clients. However, stringent regulations have prevented these banks from dealing directly with the underlying assets.
Collaboration with Regulators
Specifically, the Basel Committee on Banking Supervision’s proposal requires banks to apply a high-risk weight of 1,250% to unbacked crypto exposures. This requirement makes it challenging for banks to profit from spot trading.
Nevertheless, sources indicate that Standard Chartered is determined to launch its spot trading desk for BTC and ETH. In an email statement to Bloomberg, Standard Chartered revealed that it is working with relevant regulatory authorities to meet the cryptocurrency trading requirements for its institutional clients.
According to Standard Chartered, the upcoming trading desk aligns with its broader digital assets strategy, including access, custody, tokenization, and interoperability.
Standard Chartered Expands Its Crypto Involvement:
Amid increasing interest in cryptocurrencies among institutional investors, Standard Chartered has expanded its presence in the crypto market. Previously, it invested in two crypto firms: Zodia Markets and Zodia Custody.
Read more Whale Makes $395 Million Bitcoin Purchase Amidst Market Turbulence
Last year, it established Libeara, a blockchain unit focused on helping institutions tokenize traditional assets. The Singaporean government is utilizing this unit to develop tokenized bonds denominated in Singapore dollars.
With Standard Chartered planning to launch a spot trading desk for BTC and ETH, the bank is set to deepen its engagement in the crypto market.
The latest move by Standard Chartered into spot trading comes amid significant volatility in the crypto market. At the current price of $63,571, Bitcoin has declined by 8.8% on the monthly charts. Similarly, Ethereum, priced at $3,460 at the time of writing, has decreased by 6% over the same period.
If BTC eventually reaches its anticipated target of $150,000 by the end of 2024, ETH could potentially reach $8,000.
Read more Bold Prediction: Ethereum May Reach $22,000 by 2030, Says Matthew Sigel
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