Standard Chartered has recently been granted a license to provide crypto custody services in Luxembourg under the Markets in Crypto-Assets (MiCA) framework, as reported on January 9th. This regulatory approval marks a significant step for the bank in expanding its digital asset offerings in the European Union.
The MiCA framework aims to create a standardized regulatory approach for crypto businesses operating within the EU, requiring companies to obtain a Crypto Asset Service Provider (CASP) license from an EU member state. Standard Chartered’s acquisition of this license allows them to operate across the bloc, in compliance with the regulations that came into effect in December 2024.
By leveraging Luxembourg’s stable financial environment and clear regulatory landscape, Standard Chartered is looking to strengthen its presence in the region. This move follows the bank’s earlier introduction of digital asset custody services in the UAE, demonstrating its commitment to providing cutting-edge financial solutions while maintaining strict security and compliance standards.
Margaret Harwood-Jones, the Global Head of Financing and Securities Services at Standard Chartered, expressed her excitement about offering digital asset custody services in the EU region. She highlighted the bank’s ability to support clients with a product that is revolutionizing traditional finance, all while ensuring the level of security that comes with being a regulated entity.
Leading the bank’s operations in Luxembourg is Laurent Marochini, an executive with previous experience at Société Générale as the Head of Innovation. His expertise will be instrumental in driving Standard Chartered’s crypto initiatives in the region.
This latest move is part of Standard Chartered’s broader efforts to embrace cryptocurrencies and digital assets. In June 2024, reports surfaced about the bank preparing to launch a spot trading desk for Bitcoin and Ethereum, the two largest digital assets by market capitalization. Additionally, its affiliate, Zodia Markets, has been actively involved in the industry, facilitating the UK’s first pension fund allocation into Bitcoin through the Cartwright Pension Trusts.
Zodia Markets has also obtained a Financial Services Permission (FSP) from Abu Dhabi’s Financial Services Regulatory Authority (FSRA), enabling the firm to offer comprehensive digital asset solutions and integrate domestic banking systems for faster local settlements.
In conclusion, Standard Chartered’s foray into crypto custody services in Luxembourg underscores its commitment to staying at the forefront of the evolving digital asset landscape. With a focus on security, compliance, and innovation, the bank is poised to make significant strides in the crypto space, catering to the growing demand for digital asset services in the EU region.