Bitrabo Editorial
Standard Chartered, a prominent global bank, is stepping into the cryptocurrency realm by introducing a new spot trading desk for Bitcoin and Ethereum, according to a report by Bloomberg. This move positions Standard Chartered among the pioneers in major global banks to directly engage in trading the actual crypto assets, an area traditionally approached with caution due to strict regulatory frameworks.
Standard Chartered’s Introduction of Bitcoin And Ethereum Trading
The newly established trading desk, nestled within the bank’s foreign exchange (FX) trading division, is strategically located in London, a renowned financial center, as disclosed by knowledgeable sources. This operation is slated to commence shortly, making Standard Chartered one of the frontrunners among major global banks to facilitate spot trading for Bitcoin and Ether assets, departing from the more prevalent crypto derivatives trading.
The decision to inaugurate a spot crypto trading desk follows extensive planning and consultations with regulatory bodies. In an official statement, the bank expressed, “We have been collaborating closely with our regulators to meet the demand from our institutional clientele to trade Bitcoin and Ethereum, aligning with our strategy to assist clients in the broader digital asset landscape, from accessibility and safekeeping to tokenization and interconnectivity.”
This move is not Standard Chartered’s initial venture into the digital assets sector. The bank has actively engaged in the cryptocurrency domain through substantial investments in associated infrastructures like Zodia Custody and Zodia Markets, offering services spanning from digital asset safekeeping to sophisticated over-the-counter trading solutions.
Expanding its blockchain initiatives further, Standard Chartered unveiled Libeara, a dedicated blockchain unit designed to aid institutions in tokenizing traditional assets. Notably, this includes an innovative endeavor to establish a tokenized government bond fund denominated in Singaporean dollars, showcasing the bank’s commitment to merging blockchain technology with conventional financial instruments.
Besides the operational aspects of the trading desk, the bank’s involvement in the crypto market is also evident in its market analysis and forecasts. Recently, Standard Chartered’s analysts, spearheaded by Geoffrey Kendrick, who leads emerging markets research, made an optimistic projection regarding Bitcoin’s price trajectory, particularly in light of the forthcoming US presidential elections.
Kendrick remarked, “As we head towards the US election, I anticipate a rise to $100,000 and further to $150,000 by year-end in the event of a Trump victory,” implying that political outcomes could significantly impact market dynamics.
In the long run, Kendrick foresees Bitcoin soaring to as high as $200,000 by the end of 2025, propelled by robust and continual investment inflows into recently launched Bitcoin spot ETFs, which he believes will allure sustained pension-type investments.
Currently, BTC is trading at $63,657.