Standard Chartered Plans Spot Trading Desk for Bitcoin and Ethereum, Targeting Institutional Investors

Standard Chartered, a British multinational bank, is reportedly planning to launch a spot trading desk for two of the world's largest cryptocurrencies- Bitcoin (BTC) and Ethereum (ETH).

Major British multinational bank Standard Chartered is reportedly set to launch a spot trading desk for two of the world’s largest cryptocurrencies.

Bloomberg, citing people familiar with the matter, reported on Monday that the upcoming spot trading desk is close to starting operations within the bank’s FX trading unit in London.

If launched, the move would make Standard Chartered one of the first global banks to venture into spot crypto trading.

According to the report, the spot trading desk will cater to institutional investors seeking direct exposure to Bitcoin (BTC) and Ethereum (ETH).

Several multinational banks, like Goldman Sachs, have been offering crypto derivatives trading for institutional clients. However, stiff regulations have prevented these banks from dealing directly with the underlying assets.

In particular, the Basel Committee on Banking Supervision proposal requires banks to apply a high-risk weighting of 1,250% to unhedged crypto exposure. This requirement makes it difficult for banks to make profits via spot trading.

Nonetheless, the sources said that Standard Chartered is still keen on launching its spot trading desk for BTC and ETH.

In an email statement sent to Bloomberg, Standard Chartered said it is working with the relevant regulators to meet its institutional clients’ crypto trading demands.

“We are working with the relevant regulators to meet our institutional clients’ demands for access to crypto trading,” a Standard Chartered spokesperson said in the email.

“This aligns with our broader strategy across digital assets, encompassing access, custody, tokenization, and interoperability.”

Standard Chartered has been expanding its presence in the crypto market amid growing interest in the asset class among institutional investors.

Previously, it invested in two crypto companies, Zodia Markets and Zodia Custody, which provide crypto trading and custody services to institutional clients, respectively.

Last year, it established Libeara, a blockchain unit focused on helping institutions tokenize traditional assets. The Singaporean government is leveraging the unit to develop a tokenized bond denominated in Singaporean dollars.

With Standard Chartered planning to launch a spot trading desk for BTC and ETH, the bank would further expand its involvement in the crypto market.

Standard Chartered’s latest foray into the spot trading sector comes amid massive volatility in the crypto market. At the current price of $63,571, BTC is down 8.8% in the monthly charts.

Similarly, ETH, which is priced at $3,460 at press time, has plummeted by 6% in the same timeframe.

Meanwhile, the bank forecasted that ETH could be priced at $8,000 if BTC eventually hits the projected target of $150,000 by 2024 ending.

News source：https://www.kdj.com/cryptocurrencies-news/articles/standard-chartered-plans-spot-trading-desk-bitcoin-ethereum-targeting-institutional-investors.html

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