Standard Chartered Bank has announced its intention to provide high-quality custody services for digital assets in Dubai. This service will be offered through its subsidiary, Zodia Custody, pending approval from regulatory authorities.
Just three months after finalizing an agreement with SBI Digital Asset Holdings in Japan to establish a cryptocurrency custody platform, Standard Chartered, a major British multinational bank, is preparing to launch a similar service in Dubai. This service will cater to institutional investors in the crypto-friendly environment of Dubai.
Sources indicate that Standard Chartered plans to provide crypto custody services in the Dubai International Financial Centre (DIFC) once it obtains regulatory approval from local authorities.
According to reports, the well-established financial institution, Standard Chartered, has entered into a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC). If everything proceeds smoothly, Zodia Custody, a subsidiary of Standard Chartered, will be responsible for operating the proposed custody platform. Zodia Custody had previously announced its intentions to introduce an “earn” product designed for institutional holders of cryptocurrencies.
A well-balanced regulatory approach
While regulatory authorities in the United States are still in the process of formulating comprehensive regulations for digital assets, the United Arab Emirates has adopted a more relaxed and open-minded approach. In the UAE, authorities have embraced a liberal stance towards cryptocurrency and blockchain regulations.
The United Arab Emirates has become a thriving hub for participants in the crypto market, thanks to its enthusiastic adoption of innovative technologies like web3. Numerous businesses associated with Bitcoin (BTC), such as Crypto.com, ByBit, Binance, and more, have already obtained regulatory licenses from Dubai’s Virtual Asset Regulatory Authority(VARA) to operate within the city.
Standard Chartered CEO Bill Winters commented on the bank’s decision to introduce a digital asset custody solution in Dubai. Winters expressed that the bank recognizes digital assets as the future of financial services and highlighted the UAE’s leading role in the web3 revolution. He mentioned the UAE’s balanced approach to crypto adoption and financial regulation, making it an ideal destination for the bank’s crypto custody product.
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