Standard Chartered announced on Tuesday the launch of its digital asset custody services in the UAE, marking a significant step in institutional cryptocurrency adoption. Brevan Howard Digital, the crypto division of British hedge fund Brevan Howard, has been confirmed as the inaugural client.
UAE's Strategic Position in Digital Asset Adoption
The bank highlighted the UAE's "well-balanced approach to digital asset adoption and financial regulation" as a key driver behind this expansion. Gautam Sharma, CEO of Brevan Howard Digital, emphasized Standard Chartered's role in advancing institutional adoption, stating:
"Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption."
The UAE's Crypto Ecosystem Growth
The UAE has emerged as a hub for global crypto firms, attracting major players like Binance and OKX. Efforts to refine virtual asset regulations aim to position the country as a leader in the GCC's evolving digital economy. Other hedge funds, including Millennium Management and BlueCrest, have also established operations in Abu Dhabi.
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Standard Chartered's Crypto Ventures
Standard Chartered joins a growing list of banks expanding into digital assets. The bank supports two crypto-focused firms:
- Zodia Custody: Offers secure custody solutions.
- Zodia Markets: Provides trading services.
This initiative aligns with rising institutional interest in cryptocurrencies as an asset class.
FAQs: Digital Asset Custody in the UAE
Q: Why did Standard Chartered choose the UAE for this service?
A: The UAE’s progressive regulatory framework and institutional demand make it an ideal market for digital asset custody.
Q: What role does Brevan Howard Digital play?
A: As the inaugural client, Brevan Howard Digital validates the service’s credibility for institutional investors.
Q: How does this impact the broader crypto market?
A: Institutional participation signals maturity, potentially encouraging wider adoption and regulatory clarity.
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