Standard Chartered has expanded its crypto custody services in Europe by launching a new entity dedicated to providing these services within the European Union. This move follows the bank's recent expansion into the digital asset space in the United Arab Emirates.
Standard Chartered has been at the forefront of integrating traditional finance with digital assets, having established trading desks for Bitcoin and Ethereum last year. Margaret Harwood-Jones, the Global Head of Financing and Securities Services at Standard Chartered, expressed enthusiasm about the new offering, highlighting its potential to transform traditional finance.
The bank aims to meet the growing demand for secure and regulated digital asset custody solutions. The new service will be headquartered in Luxembourg, aligning with the EU's regulatory framework for digital assets.
Standard Chartered has projected that the digital assets market could reach a market capitalization of $10 trillion by the end of 2026. The bank's analysis suggests that existing digital assets are likely to experience significant price increases, reflecting growing investor interest and market maturation.
To lead its new Luxembourg-based entity, Standard Chartered has appointed Laurent Marochini as CEO. Marochini brings experience from his previous role at Societe Generale Securities Services. The establishment of this custody service aims to provide a regulated and secure environment for the custody of cryptocurrencies, fostering greater confidence among potential investors.
The launch of custody services in the EU comes at a critical time for the cryptocurrency industry, which is facing a rapidly evolving regulatory landscape. The MiCA framework introduced by the EU in 2023 aims to provide clarity and oversight for digital assets. Standard Chartered's proactive stance in establishing a regulated custody service positions it well to capitalize on the growing interest in cryptocurrencies while adhering to the highest standards of governance.
In summary, Standard Chartered's expansion into the European crypto custody market marks a significant moment for the bank and the broader digital asset ecosystem. With ambitious growth projections and a commitment to regulatory compliance, the bank is poised to play a significant role in shaping the future of digital finance in Europe.