Standard Chartered Bank is making plans to introduce a spot trading desk for Bitcoin and Ethereum in order to facilitate direct spot trading of cryptocurrencies, according to an anonymous source. This new development is in line with the multinational bank’s significant interest in the crypto market.
The London-based bank is one of several major financial institutions expanding their involvement in the cryptocurrency market as institutional adoption of the sector grows. According to a source cited by Bloomberg, Standard Chartered’s spot trading desk will be based in London and will be a part of the bank’s FX division.
For some time, Standard Chartered has been a discreet participant in the crypto sector. The bank holds substantial stakes in crypto firms, Zodia Custody and Zodia Markets. Zodia Custody provides crypto custody services, while Zodia Markets offers crypto trading for institutions. These crypto-focused investments demonstrate the bank’s dedication to the digital asset space and its willingness to provide services to its clients.
The upcoming launch of Standard Chartered’s spot trading desk coincides with the introduction of spot Bitcoin exchange-traded funds (ETFs) in major markets, particularly in Asia and North America. Crypto enthusiasts anticipate that Standard Chartered’s Bitcoin and Ethereum desk will pave the way for other major banks to offer spot crypto trading services to both retail and institutional investors.
In addition to the trading desk, Standard Chartered has maintained a positive outlook on Bitcoin and Ethereum prices. The banking giant anticipates that the launch of spot Bitcoin ETFs will drive the Bitcoin price to $200K by 2024. Additionally, Standard Chartered expects Ethereum to surpass $8,000 by the end of 2024 following the approval of spot Ether ETF.
Aside from its involvement in cryptocurrency trading, Standard Chartered has been actively exploring blockchain technology to improve financial services. In November 2023, the London-based bank established a blockchain unit called Libeara to assist institutions with the tokenization of real-world assets. Libeara partnered with FundBridge Capital, a Singapore-regulated fund platform, to create a tokenized Singapore-dollar government bond fund for accredited investors. Tokenization involves converting physical or tangible assets into digital tokens on a blockchain, representing ownership and facilitating easier and more secure trading.
Similarly, HSBC Holdings recently launched a platform to tokenize ownership of physical gold held in its London vault, and UBS Asset Management initiated a pilot for a tokenized money market fund on Ethereum in October 2023.