Standard Chartered multinational bank announced today, Tuesday, September 10, that it has started offering its highly-anticipated custody services for digital services in the United Arab Emirates UAE.
As per the statement, the Dubai Financial Services Authority (DFSA), a body operating within the Dubai International Financial Centre (DIFC), granted Standard Chartered the license to offer crypto-assets custody services to residents in the UAE.
Prior to this move, Standard Chartered had signed a memorandum of understanding (MoU) with the DIFC on May 10, 2023, to partner on offering crypto-related services, including crypto assets custody services.
Standard Chartered announced that it would begin its crypto custody services with Bitcoin (BTC) and Ethereum (ETH), the two largest crypto assets by market cap, with plans to expand its crypto offerings in the near future.
Standard Chartered Partners With Brevan Howard Digital To Start Offering Crypto Custody Services In The UAE
While the license empowers Standard Chartered to offer crypto-assets custody services with the country, the bank partnered with Brevan Howard Digital to begin offering the services. Brevan Howard Digital is the crypto assets division of the British hedge fund.
The crypto custody services will enable customers to keep their crypto assets with the bank. The Group Chief Executive of Standard Chartered, Bill Winters, said that the bank was able to receive the license because of the UAE’s “well-balanced approach to crypto adoption and financial regulation.”
Standard Chartered’s Unrelenting Move Into Crypto
Standard Chartered has repeatedly shown its unrelenting effort to venture into the crypto industry. In the statement, Winters emphasized that Standard Chartered “firmly believe(s) in crypto assets.”
On July 18, Standard Chartered collaborated with Animoca Brands, a Web3 firm, and HKT to participate in a stablecoin sandbox led by the Hong Kong Monetary Authority (HKMA).
On July 30, Standard Chartered ventured further into cryptocurrency by backing MyZoi, a Dubai-based fintech, to launch an all-inclusive digital wallet.
On August 29, the multinational bank joined forces with Crypto.com cryptocurrency exchange to offer fiat services to 90+ countries, including the UAE.
The fiat services enable Crypto.com customers to withdraw and deposit their funds in USD, UAE Dirhams, and Euros.
UAE, One Of The Leaders In Cryptocurrency Adoption
The UAE is on track to becoming a leader in cryptocurrency adoption by attracting some of the biggest crypto firms in the world.
Lately, the UAE attracted OKX, Binance, and other crypto exchanges into its region. Also, Tether recently announced its plan to launch a stablecoin pegged to the UAE dirham.
Besides that, the UAE has been developing friendly regulations around digital assets to attract new businesses.
According to a recent study by Henley & Partners, the UAE holds the third position in crypto adoption, following Singapore and Hong Kong.
Also, according to the Henley Crypto Adoption Index 2024, the country scored 41.8, showing its unrelenting effort to become a crypto hub.
