Standard Chartered to Launch Spot Trading Desk for Bitcoin and Ethereum

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). 

Bloomberg, citing sources familiar with the matter, reported today that the upcoming spot trading desk is close to starting operations under the bank’s FX trading unit in London. Consequently, 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 BTC and ETH. 

Collaboration with Regulators  

It bears mentioning that 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’s proposal on Banking Supervision requires banks to apply a high-risk weighting of 1,250% to unhedged crypto exposure. This requirement makes it challenging for banks to make profits via spot trading.  

Nonetheless, the sources suggest Standard Chartered is determined to launch its spot trading desk for BTC and ETH. 

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

According to Standard Chartered, the upcoming trading desk aligns with its broader strategy across digital assets, encompassing access, custody, tokenization, and interoperability. 

Standard Chartered Expands Involvement in Crypto 

Amid the growing interest in crypto among institutional investors, Standard Chartered has been expanding its presence in the crypto market. Previously, it invested in two crypto companies: Zodia Markets and Zodia Custody. 

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.