Standard Chartered to Launch Bitcoin and Ethereum Spot Trading Desks

British multinational bank Standard Chartered is reportedly planning to launch a spot trading desk for two of the world’s largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).
The upcoming spot trading desk will operate under the bank’s foreign exchange trading unit in London, Bloomberg reported, citing people familiar with the matter. The move would therefore make Standard Chartered one of the first global banks to foray into spot cryptocurrency trading.
According to reports, the spot trading desk will provide institutional investors with direct exposure to BTC and ETH.
Working with regulators
It is worth mentioning that some multinational banks (such as Goldman Sachs) already provide crypto derivatives trading to institutional clients. However, strict regulatory provisions prevent these banks from directly handling the underlying assets.
In particular, the proposals put forward by the Basel Committee on Banking Supervision require banks to apply a high risk weight of 1,250% for unhedged cryptocurrency risks. This requirement makes it difficult for banks to profit from spot trading.
However, sources indicate that Standard Chartered is determined to launch a spot trading desk for BTC and ETH.
Standard Chartered Bank revealed in an emailed statement to Bloomberg that it is working with relevant regulators to meet the cryptocurrency trading needs of its institutional clients.
According to Standard Chartered, the upcoming trading desk is in line with its overall strategy in the digital asset space, including access, custody, tokenization and interoperability.
Standard Chartered Bank expands involvement in cryptocurrency sector
Standard Chartered has been expanding its presence in the cryptocurrency market amid growing interest from institutional investors. Previously, the bank invested in two cryptocurrency companies: Zodia Markets and Zodia Custody.
Last year, the bank launched a blockchain unit called Libeara, which is focused on helping institutions tokenize traditional assets. The Singapore government is using this unit to develop tokenized bonds denominated in Singapore dollars.
If Standard Chartered plans to launch a spot trading desk for BTC and ETH, it will further expand its involvement in the cryptocurrency market.
Standard Chartered’s latest move into spot trading comes amid extreme volatility in the cryptocurrency market. According to the current price, BTC is priced at $63,571, having fallen 8.8% on the monthly chart. Likewise, Ethereum is priced at $3,460, down 6% over the same period.
Meanwhile, Standard Chartered Bank predicts that if BTC eventually reaches its projected $150,000 target by 2024, ETH’s price could reach $8,000.
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