In the United Kingdom and Europe, a Standard Chartered division aims to introduce a cryptocurrency brokerage and exchange platform aimed at institutional clients. A collaboration between SC Ventures and BC Technology Group will establish the new exchange.
The new platform will be a partnership between SC Ventures, the bank’s innovation division, and BC Technology Group, a Hong Kong-based virtual asset investment firm. The first cryptocurrency exchange to be approved by Hong Kong’s Securities and Futures Commission is BC Technology’s OSL.
StanChart is one of the most powerful cryptocurrency affirmations ever from a traditional lender. The new platform from StanChart will focus on the European market, linking institutional traders with partners trading bitcoin, ether, and other cryptos. The decision follows as global banks try to balance their clients’ enthusiasm in digital currencies with their worries about the dangers they pose.
The new crypto trading platform and service from Standard Chartered will be stationed in the United Kingdom. The bank aims to introduce the new service in the fourth quarter of this year, with Usman Ahmad of BC Group acting as CEO and Nick Philpott of SC Ventures working as COO.
In contrast, HSBC, a competitor of StanChart, announced earlier this year that the bank had no intentions to establish a cryptocurrency trading desk. HSBC has also modified its policy to prohibit clients from owning equities in publicly traded businesses that are heavily involved in the crypto industry.
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SC Ventures is laying the groundwork for a secure and dependable cryptocurrency investing network. SC Ventures’ Alex Manson said that they have a strong belief that virtual currencies are here to stay and will be accepted by the institutional market as a very significant asset class.
Standard Chartered’s decision to launch a crypto exchange and brokerage service arrives at a key juncture as international acceptance and institutional demand for crypto access and exposure grow. The bank joins the ranks of Morgan Stanley, Goldman Sachs, Citigroup, and DBS as prominent institutions that have accepted bitcoin.
Wall Street Banks Stances on Cryptocurrency
Despite the current decline in cryptocurrency markets, several Wall Street institutions have made attempts over the last quarter to offer crypto services to their users. On May 5, NYDIG, a cryptocurrency custody provider, launched a program that will introduce cryptocurrency to hundreds of institutions throughout the US.
On May 7, Citibank revealed that it was contemplating joining the booming cryptocurrency industry. UBS Group, a Swiss banking giant, said on May 10 that it was exploring ways to provide cryptocurrencies to its high-net-worth clients. Standard Chartered’s decision signals a resurgence of interest in cryptocurrency among big financial institutions.
Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, and Bank of America executives were scheduled to speak before the Senate Banking Committee and the House Financial Services Committee later that month. A handful of prepared remarks indicate that virtual currencies will be a hot topic. The banks will address their roles in the market as well as their business practices.
Additionally, Wells Fargo and Bank of America have said that they do not lend against cryptocurrencies and do not bank businesses that are primarily engaged in bitcoin trading and investing. The banks say they’re keeping an eye on advancements with cryptocurrencies, but their position as a currency and payment method is still up in the air. Charles Scharf, CEO of Wells Fargo, stated that they are “still assessing potential, risks, and client demand” in terms of crypto acceptance.
Bottom Line
As interest in the crypto market increases, the more the traditional institutions see it fit to have a clear stance and action towards it. Some of them have embraced and integrated the crypto space’s nature with their system, making it accessible to their current clientele. Although there is a layer of security as their customers are assured of the companies’ reputation and integrity, the crypto market is in itself a different case. It is highly volatile, enough for even governments to be wary of it.
