Standard Chartered, a major European bank, recently revealed its plans to open a cryptocurrency exchange and brokerage platform in the United Kingdom and Europe.
The Unit Will Target Institutional Investors
According to a Reuters report from June 2, a StanChart PLC entity is planning to launch a crypto trading and exchange platform in the United Kingdom and Europe. The crypto platform will be developed under a joint venture between BC Technology Group, which runs the Hong Kong-licensed crypto exchange OSL, and SC Ventures (StanChart’s development arm).
The exchange and brokerage platform, according to the news report, would focus on the European market, linking abundant clients with counterparties trading BTC, ETH, and other significant digital assets.
StanChart’s strategy to make crypto offered to institutional traders is the current endorsement for the new asset class from a significant bank.
According to Alex Manson, Head of SC Ventures, the firm’s development arm, the prepare for a crypto exchange and brokerage will be targeted at institutional clients.
“We have a strong conviction that digital assets are here to remain and will be adopted by the institutional market as a highly relevant property class. We are constructing the foundation for a safe and dependable financial investment infrastructure,” Manson stated.
The platform is anticipated to release in the fourth quarter of this year, with BC Group Chief Information Officer Usman Ahmad working as CEO and SC Ventures’ Nick Philpott working as COO.
Requirement Chartered’s move toward the establishment of a crypto exchange and brokerage platform comes at a vital time, as global adoption and institutional demand for access and exposure to crypto continues to grow in spite of unfavorable limelights and tightening up regulations from countries such as China.
Related article| How Cryptocurrency Wallets Could Replace Banks
Wall Street Continues Crypto Embrace
The recent climb in the price of bitcoin and other cryptocurrencies, together with the listing of the Coinbase exchange on the Nasdaq stock exchange, has actually assisted legitimize the possession class and put numerous critics to rest.
Despite the current drop in cryptocurrency markets, a number of Wall Street banks have taken efforts to offer bitcoin services to its customers in the last month.
NYDIG, a crypto custody supplier, revealed a service on May 5 that will bring bitcoin to numerous institutions throughout the United States. Customers of participating U.S. banks will be able to purchase, hold, and trade BTC using their existing accounts, thanks to a cooperation with fintech firm Fidelity National Information Services.
Following that revelation, numerous major banking institutions began to embrace cryptocurrency after years of widespread opposition. Citibank revealed on May 7 that it was considering getting in the rewarding cryptocurrency markets, mentioning a surge in interest among its clients.
Then, on May 10, UBS Group, a Swiss banking corporation, exposed that it was taking a look at many alternatives for supplying cryptocurrency to its high-net-worth clients.
This move from Standard Chartered marks a renewed interest in crypto from major banks.