Standard Chartered doubles down on crypto with EU hub launch

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Standard Chartered revealed that it obtained regulatory approval in Luxembourg to offer digital asset custody services. The financial institution said the Luxembourg hub will serve as its regulatory entry point to the EU market.

The bank received approval from the European Union amid pressure from the region to enforce its Market in Crypto Assets (MiCA) regulation on companies operating in the EU. The international banking group marked another milestone in expanding its digital asset strategy following its recent launch of similar services in the United Arab Emirates.

Standard Chartered receives Luxembourg digital asset license in the EU

Standard Chartered secures a license in Luxembourg to provide cryptocurrency custody services.

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Standard Chartered highlighted that the Luxembourg hub will be its regulatory entry point to the European Union market. The international banking group also highlighted that it aimed to capitalize on the country’s established financial infrastructure and balanced regulatory environment. The bank’s move into the region came as institutional demand for digital asset services advanced across the European Union.

“Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption.”

– Gautam Sharma, Brevan Howard Digital’s CEO

Standard Chartered announced that it appointed Laurent Marochini, former Head of Innovation at Societe Generale, as CEO of the Luxembourg entity. 

The multinational bank announced that Laurent Marochini will move from his previous position as Head of Innovation at Societe Generale to fill the position of CEO at Standard Chartered Luxembourg. Marochini declared that he is fully committed to delivering excellence for the bank’s clients, team, and stakeholders.

Margaret Harwood, Standard Chartered Global Head of Financing & Securities Services, said the firm was excited to offer its digital asset custody services to the EU region. Harwood added that the move enabled the bank to support its clients with a product that changed the landscape of traditional finance while maintaining the security standards expected from a regulated entity.

The financial service group highlighted that the Luxembourg operation was part of its digital asset strategy and followed similar developments by other financial institutions in the digital asset sector. 

Standard Chartered Bank seeks to establish a global reach

The bank runs its crypto arm, Zodia Markets, which recently announced plans to acquire Elwood Capital Management Ltd (ECML), the digital asset over-the-counter (OTC) trading division of Elwood Technologies. Zodia Markets claimed that the deal aimed to strengthen its regulated presence and improve its services for institutional clients globally.

The bank’s crypto arm also revealed that the acquisition aligned with Elwood’s intention to focus exclusively on digital asset execution and portfolio management software while divesting its OTC trading business.

OKX exchange also revealed in October 2024 that it partnered with Standard Chartered. The bank said the exchange leveraged its custodian services and risk management practices to expand its custody offerings to institutional crypto operations.

Harwood mentioned that the bank would serve as OKX’s third-party custodian to provide institutional investors in the evolving crypto sector with the assurance they require. The bank’s partnership with OKX aligned with the exchange’s commissioned report by Economist Impact titled “Digital Assets as the New Alternative for Institutional Investors: Market Dynamics, Opportunities and Challenges.”

The report highlighted institutions’ growing demand for digital assets and disclosed that 80% of hedge funds engaging in digital assets use third-party custodians. It also noted that institutions’ growing demand for digital assets drove demand for separate trade execution and asset custody.

Lennix Lai, OKX’s Global Chief Commercial Officer, mentioned that Standard Chartered’s extensive global banking expertise aligned with the exchange’s objective to provide crypto services and reinforce the confidence of its institutional clients in managing their digital assets.

Standard Chartered also revealed in September 2024 that it began offering digital asset custody services in the United Arab Emirates. The bank argued that it chose UAE for its launch due to the country’s balanced approach to digital companies like Binance and OKX.

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