Standard Chartered, a renowned British multinational bank, is reportedly preparing to launch a spot trading desk for Bitcoin (BTC) and Ethereum (ETH), two of the world’s largest cryptocurrencies. According to sources familiar with the matter, the spot trading desk is expected to commence operations under the bank’s FX trading unit in London, making Standard Chartered one of the pioneering global banks to enter the field of spot crypto trading. The primary target audience for this trading desk would be institutional investors seeking direct exposure to BTC and ETH.
It is worth noting that while some multinational banks, such as Goldman Sachs, have been offering crypto derivatives trading to institutional clients, strict regulations have hindered them from directly engaging with the underlying assets. The Basel Committee’s proposal on Banking Supervision, for instance, mandates banks to assign a high-risk weighting of 1,250% to unhedged crypto exposure. Consequently, banks find it challenging to generate profits through spot trading. However, despite these obstacles, Standard Chartered is determined to establish its spot trading desk for BTC and ETH.
In a statement sent via email to Bloomberg, Standard Chartered revealed that it is collaborating with relevant regulators to meet the cryptocurrency trading demands of its institutional clients. The bank stated that the upcoming trading desk aligns with its broader strategy in digital assets, which encompasses access, custody, tokenization, and interoperability.
Standard Chartered has been expanding its presence in the crypto market, given the growing interest among institutional investors. It has previously invested in two crypto companies, namely Zodia Markets and Zodia Custody. Moreover, it established Libeara, a blockchain unit focused on assisting institutions in tokenizing traditional assets. The Singaporean government is utilizing this unit to develop a tokenized bond denominated in Singaporean dollars.
By launching a spot trading desk for BTC and ETH, Standard Chartered aims to further enhance its involvement in the crypto market. The bank’s latest move comes amid significant volatility in the crypto market, with BTC currently priced at $63,571, down 8.8% in the monthly charts, and ETH valued at $3,460, experiencing a 6% decline in the same timeframe.
Standard Chartered has predicted that if BTC reaches the projected target of $150,000 by the end of 2024, ETH could potentially be priced at $8,000. However, it is important to note that this content serves as informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not necessarily reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic will not be held responsible for any financial losses incurred.
