Standard Chartered Broadens UAE Crypto Services With Direct Bitcoin and Ethereum Trading

Standard Chartered is now offering cryptocurrency trading services targeting its high-net-worth customers based in the United Arab Emirates (UAE). This means that investors will be able to exchange Bitcoin and Ethereum directly from their bank accounts. In an official announcement from the bank, the service has been granted permission by the Virtual Assets Regulatory Authority (VARA) in Dubai and is available to Professional Investor clients in the UAE for now. The service offers traders the ability to trade in cryptocurrencies without having to set up an account with another exchange or create a personal digital wallet. 

Dubai Approval Enables Bank-Managed Crypto Trading for Professional Investors

As per the announcement, Standard Chartered will manage the trading within its own banking system. The move was described by the bank as its first cryptocurrency trading service for its wealthy clients around the world and the first such offering from any international bank in the UAE. The service was developed by Standard Chartered through collaboration between its Wealth and Retail Banking and Corporate and Investment Banking divisions, with the help of Zodia Markets, a digital asset company that is backed by its venture unit, SC Ventures. There are plans by the bank to roll out the service to other markets in the future, but no specific timelines have been given.

In the new system, eligible customers are able to buy and trade BTC and ETH via their existing Standard Chartered bank accounts. The program operates on a closed-loop business model, where the bank handles all transactions, custody, and settlement without the need for the client to move any assets from an external wallet. Standard Chartered said that such a design would limit the exposure to risks related to third-party wallets.

There was no mention of the minimum amount that could be invested, trading fees, restrictions on transactions, or whether in the future the customers would have access to cryptocurrencies other than BTC and ETH.

According to Samir Subberwal, Global Head of Wealth Solutions, Retail Products, Data & Analytics at Standard Chartered, the demand for digital assets is becoming part of the bank's wealth management offering. Subberwal further added, “With digital assets moving into mainstream wealth conversations, clients are increasingly looking not only for access, but also for the security, trust and confidence that comes from investing through a regulated and trusted institution.”

Prior to the offering of direct cryptocurrency trading, Standard Chartered had already enabled eligible wealth clients to invest in cryptocurrency exchange-traded funds through its cash equities platform. Its existing range of investments included structured investments and over-the-counter derivatives giving exposure to cryptocurrency markets. This new service brings direct BTC and ETH trading to the list of investment options, which will be carried out under the bank's custody.