Standard Chartered advances digital asset custody with new UAE licence

Standard Chartered has unveiled its highly anticipated digital asset custody service in the UAE, marking a significant milestone in the bank’s digital asset strategy. The service, recently granted a licence by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC), aligns with the memorandum of understanding (MoU) signed in May 2023.

The new service is designed to safeguard digital assets, leveraging the UAE’s balanced approach to digital asset adoption and financial regulation. Initially, it will support the two leading cryptocurrencies by market capitalisation: Bitcoin and Ethereum. Brevan Howard Digital, the crypto and digital asset division of Brevan Howard, is the inaugural client for this service.

Bill Winters, Group Chief Executive of Standard Chartered, commented: “The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered, but for the financial services industry. We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business. Our robust infrastructure, coupled with our expertise in the field, allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem.”

Margaret Harwood-Jones, Global Head of Financing & Securities Services, added: “After a period of intensive work and close collaboration with regulators both regionally and globally, we are thrilled to welcome Brevan Howard Digital as the first client of our digital asset custody offering. This announcement demonstrates the growing institutional interest in digital assets and the critical need for secure, regulated custody solutions.

“Our offering goes beyond simple wallet services – it is a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk and prudential point of view. It is a game changer for institutional clients, as we can support them with our traditional expertise to navigate the complexities of the digital asset space, without compromising on the highest standards of security.”

Gautam Sharma, Chief Executive Officer of Brevan Howard Digital, noted: “This is a significant win for the UAE and the wider digital asset industry. Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption. The development of the institutional infrastructure within the asset class and region supports our established business within the ADGM in its continued expansion and our ongoing efforts toward improving and reinforcing standards in the digital asset ecosystem.”

Looking ahead, Standard Chartered plans to expand its digital asset custody services to include a broader range of digital assets and is exploring opportunities to extend these services to other key financial hubs within its global footprint.

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