StanChart setting up spot crypto trading desk for Bitcoin, Ether

(Bloomberg) — Standard Chartered Plc (STAN.L) has set up a trading desk for Bitcoin and Ether, making it one of the first global banks to enter spot cryptocurrency trading, people familiar with the matter said.

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The new crypto desk is close to being operational and will be part of the bank’s foreign exchange trading unit, said two people who asked not to be named discussing private information. According to one person, it will be managed from London.

Banks including Goldman Sachs Group Inc. have been trading cryptocurrency derivatives for years, but strict regulations prevent them from dealing directly in underlying assets. The Basel Committee on Banking Supervision has recommended that banks should apply a 1,250% risk weight to any unhedged crypto exposure, making it harder to make a profit.

“We are working closely with our regulators to support our institutional customers’ demand for Bitcoin and Ethereum trading, in line with our strategy to support our customers across the broader digital asset ecosystem, from access and custody to tokenization and interoperability,” the bank said. in an emailed statement.

A Standard Chartered spokesman declined to comment further.

Standard Chartered is among several major banks moving further into crypto as institutional adoption of the asset class expands. He owns shares in Zodia Custody and Zodia Markets, two crypto firms that offer services ranging from custody to over-the-counter trading.

In November, it launched a blockchain unit called Libeara to help institutions tokenize traditional assets. The unit supports the creation of a tokenized government bond fund using the Singapore dollar.

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