Global banking giant Standard Chartered is entering the crypto space with a new Bitcoin and Ethereum trading desk, as revealed in a Bloomberg report. This development positions Standard Chartered as one of the first major global banks to directly engage in the trading of underlying crypto assets, an area that has seen significant participation from major global banks primarily due to strict regulations.
Standard Chartered will offer Bitcoin and Ethereum
The newly established trading desk is integrated with the bank’s foreign exchange (FX) trading unit and is conveniently located in London, the world’s financial center, sources with knowledge of the situation reported. This functionality will begin immediately, making Standard Chartered one of the world’s first major banks to facilitate the exchange of real assets for Bitcoin and Ether, breaking away from other commonly traded crypto derivatives.
The decision to launch a crypto trading desk stems from a careful period of planning and regulatory consultation. “We have been working closely with our regulators to support our clients’ need for a Bitcoin and Ethereum exchange, in line with our strategy to support clients across the entire digital ecosystem, from access and storage to tokenization and collaboration,” the bank said. with an official statement.
This move is not Standard Chartered’s first foray into the digital asset space. The bank has taken an active role in the cryptocurrency sector with significant investments in related infrastructure, such as Zodia Custody and Zodia Markets, which provide services ranging from custody of digital assets to complex over-the-counter trading solutions.
Continuing to expand its blockchain efforts, Standard Chartered is launching Libeara, a dedicated blockchain unit aimed at helping institutions tokenize traditional assets. Notably, this includes an innovative project to create a tokenized government bond fund denominated in Singapore dollars, demonstrating the bank’s commitment to integrating blockchain technology with traditional financial instruments.
Apart from the operational details of the trading desk, the bank’s interaction with the crypto market is also reflected in its market analysis and forecasts. Recently, Standard Chartered analysts, including Geoffrey Kendrick who heads emerging markets research, issued an incredibly optimistic forecast for Bitcoin’s price trajectory, especially in the context of the upcoming US presidential election.
“As we get closer to the US election, I expect it to reach $100,000 and then $150,000 by the end of the year if Trump wins,” Kendrick said, suggesting that political outcomes could have a significant impact on markets.
In the long term, Kendrick envisions Bitcoin reaching $200,000 by the end of 2025, driven by strong and sustained investment in newly launched Bitcoin ETFs, which he believes will attract continued investment in the form of pensions.
At press time, BTC traded at $63,657.
Featured image from X @BTC_Archive, chart from TradingView.com
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