Standard Chartered, the British multinational bank, is set to launch a spot trading desk for Bitcoin (BTC) and Ethereum (ETH), according to sources familiar with the matter. This move would make Standard Chartered one of the first global banks to enter the spot crypto trading market.
The spot trading desk will primarily target institutional investors looking for direct exposure to BTC and ETH. While several multinational banks, including Goldman Sachs, offer crypto derivatives trading, strict regulations have prevented them from directly dealing with the underlying assets. The Basel Committee’s proposal on Banking Supervision, for example, requires banks to apply a high-risk weighting to unhedged crypto exposure, making it difficult for banks to generate profits through spot trading.
Despite these challenges, Standard Chartered is determined to launch its spot trading desk for BTC and ETH. The bank has stated that it is collaborating with regulators to meet the demands of its institutional clients for crypto trading.
This upcoming trading desk is part of Standard Chartered’s broader strategy in the digital assets space, which includes access, custody, tokenization, and interoperability. The bank has been expanding its involvement in the crypto market, having made investments in crypto companies Zodia Markets and Zodia Custody. It has also established a blockchain unit called Libeara, focused on helping institutions tokenize traditional assets.
Standard Chartered’s entry into the spot trading sector comes at a time of significant volatility in the crypto market. BTC is currently priced at $63,571, down 8.8% in the monthly charts, while ETH stands at $3,460, a decrease of 6% in the same timeframe. The bank has forecasted that ETH could reach $8,000 if BTC reaches the projected target of $150,000 by the end of 2024.
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