Standard Chartered has launched its digital asset custody service in the United Arab Emirates (UAE), marking a significant step in the bank’s expansion into the digital asset sector. Brevan Howard Digital, the digital asset division of the British hedge fund Brevan Howard, is the first client to use this new service.
The custody offering, which allows institutional clients to securely store their digital assets, has been licensed by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC). Standard Chartered has introduced this service in the UAE due to the country’s balanced regulatory approach to digital asset adoption and its growing reputation as a hub for virtual assets.
Strategic Focus on UAE’s Emerging Digital Asset Market
Standard Chartered’s decision to launch the custody service in the UAE reflects the nation’s efforts to establish itself as a leader in the digital asset space. The UAE has recently attracted major cryptocurrency firms such as Binance and OKX, and hedge funds like Brevan Howard, Millennium Management, and ExodusPoint Capital Management have also opened offices in the region. The country is actively developing regulations for virtual assets to enhance its economic competitiveness within the Gulf region.
“The UAE’s well-balanced regulatory framework for digital assets makes it the ideal location for this launch,” said Bill Winters, Group Chief Executive of Standard Chartered. “Our new digital asset custody offering bridges traditional finance and the emerging digital asset ecosystem. We believe this service positions us at the forefront of the evolving digital asset industry.”
Brevan Howard Digital: The First Client
Brevan Howard Digital is the first institution to adopt Standard Chartered’s new service. Gautam Sharma, CEO of Brevan Howard Digital, emphasized the importance of this partnership, noting, “Standard Chartered’s global reputation and commitment to digital assets provide the credibility needed for greater institutional adoption. This development strengthens the infrastructure for digital assets in the UAE, supporting our operations and expansion in the region.”
Brevan Howard, which opened its Abu Dhabi office in 2023, is one of several hedge funds that have expanded to the UAE, attracted by the country’s favorable regulatory environment and growing role in the digital economy.
Broader Scope and Future Plans
Initially, Standard Chartered’s custody services will focus on Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. However, the bank plans to broaden its services to include a wider range of digital assets over the coming months. The launch is part of a broader strategy by Standard Chartered to integrate digital asset solutions into its offerings, as more institutional investors embrace cryptocurrency and blockchain technology.
Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, highlighted the importance of secure, regulated custody solutions for institutional clients. “Our offering addresses the unique challenges of digital asset custody, with a focus on regulatory, risk, and prudential aspects,” she said. “We are excited to see growing interest from institutions in this space, and our new service will help them navigate the complexities of digital assets without compromising on security.”
Expanding Digital Asset Footprint
This move is part of Standard Chartered’s broader push into digital finance, which includes backing crypto firms Zodia Markets and Zodia Custody. The bank has been investing in fintech firms, including a recent investment in United Fintech Group Limited, as it seeks to develop a comprehensive technology platform for capital markets.
Standard Chartered plans to extend its digital asset custody services to other key financial hubs within its global footprint as the bank continues to expand its role in the digital asset sector.
About Standard Chartered
Standard Chartered is a global bank with a focus on emerging markets. The bank operates in over 60 countries and provides a wide range of financial services to individuals, institutions, and corporations.
About Brevan Howard Digital
Brevan Howard Digital is the crypto and digital asset division of Brevan Howard, a British hedge fund. The division focuses on institutional investment in digital assets and operates out of Abu Dhabi Global Market (ADGM).
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