Standard Chartered to Start Spot Trading Desk For BTC and ETH

Standard Chartered (STAN), a British multinational bank, is gearing up to start a spot trading desk for two of the world’s largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). According to Bloomberg, the upcoming spot trading desk is set to commence operations under the bank’s FX trading unit in London, positioning Standard Chartered as one of the pioneering global banks to delve into spot crypto trading.

The spot trading desk is poised to cater to institutional investors seeking direct exposure to BTC and ETH. Although many multinational banks, like Goldman Sachs, have offered crypto derivatives trading for institutional clients, stringent regulations have hindered these banks from directly engaging with the underlying assets. For instance, the Basel Committee’s proposal on Banking Supervision necessitates banks to apply a high-risk weighting of 1,250% to unhedged crypto exposure, posing a challenge for banks to generate profits through spot trading.

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Despite these regulatory challenges, Standard Chartered appears resolute in its commitment to launch the spot trading desk for BTC and ETH. In a statement to Bloomberg, the bank noted its collaboration with relevant regulators to address the crypto trading needs of its institutional clients. This initiative aligns with the bank’s broader strategy across digital assets, encompassing access, custody, tokenization, and interoperability.

Standard Chartered Takes a Bigger Step into Crypto Space 

Standard Chartered has been actively expanding its presence in the crypto market, having previously invested in two crypto companies: Zodia Markets and Zodia Custody. Additionally, it established Libeara, a blockchain unit focused on helping institutions tokenize traditional assets. Notably, the Singaporean government is leveraging this unit to develop a tokenized bond denominated in Singaporean dollars.

By planning to launch a spot trading desk for BTC and ETH, the bank is signalling further expansion of its involvement in the crypto market. Standard Chartered move into the spot trading sector comes amid significant volatility in the crypto market, with BTC currently at $63,571, down 8.8% in the monthly charts, and ETH at $3,460, marking a 6% decrease in the same timeframe. Moreover, the bank prediction that ETH could scale $8,000 if BTC hits the projected target of $150,000 by 2024.

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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
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