The UK-based multinational banking and financial services company Standard Chartered (StanChart) is launching a digital currency exchange, reports say.
Seconds. on June 2, StanChart partnered with Hong Kong Stock Exchange owner BC Technology Group to launch a platform for the institutional market in the UK and Europe.
Standard Chartered: Crypto is “here to stay”
The bank has long promoted its interest in the realm of digital currency, and the news of the launch follows several efforts to enter the field of digital currency trading.
The project will be managed by SC Ventures, the bank’s innovation arm, with no deadline to start activities yet named.
“We have a strong belief that digital assets came to stay and will be adopted by the institutional market as a class of highly relevant assets,” he told. Alex Manson, director of SC Ventures.
StanChart thus becomes the latest conventional financial player to engage in digital currency trading. Its timing is conspicuous, as it comes after Bitcoin (BTC) lost 50% of its value in USD, taking away most of the altcoins.
Earlier, banking giant HSBC publicly announced that it had no interest in entering the space, even when competitors seek to attract institutional customers with their own internal offerings. Meanwhile, U.S. domestic banks are expected to open mass trading in Bitcoin by the end of the year.
1-day candlestick chart of Standard Chartered stock price. Source: TradingView
Bank try not to be left behind
As Cointelegraph reported, meanwhile, experts believe it is ultimately a matter of ‘if’, not ‘when’ when it comes to inherited financial participation.
Raphael Polansky, managing director of Boerse Stuttgart Digital Ventures GmbH, told Cointelegraph last week that cryptographic custody will also see a steady stream of interest from traditional banks. Here, however, there may be more reluctance to put skin in the game.
“We anticipate many strategic moves in the market where traditional banks will invest in cryptographic custodians instead of developing their own solutions,” he said.
For its part, StanChart launched a digital currency custody company, Zodia, in late 2020.
“Zodiac’s mission is to be a‘ force for good ’by raising industry standards for digital assets in a sustainable, secure and responsible manner,” Manson said in a press release at the time.