The UAE’s growing financial services sector continues to court international affection. The latest development sees Standard Chartered laud what it calls a major milestone in the country.
Standard Chartered has launched its digital asset custody service in the UAE, with the UK-based multinational bank citing the Middle Eastern nation’s ‘well-balanced approach to digital asset adoption and financial regulation’.
The service has been issued a licence by the Dubai Financial Services Authority (DPSA) to operate within the Dubai International Financial Centre (DIFC), a special economic zone and ‘innovation hub’ within the UAE’s largest city.
Bill Winters, Standard Chartered Bank Group CEO, said: “The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered, but for the financial services industry.
“We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business.
“Our robust infrastructure, coupled with our expertise in the field allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem.”
This is the latest strengthening of Standard Chartered’s links to the UAE, where the government has been focusing on growing the local financial services and fintech sectors. The bank had previously signed a Memorandum of Understanding (MoU) with the UAE in May this year.
Of note, digital asset management has been a particular talking point, perhaps even an area of concern, for some stakeholders in UAE finance. The DIFC itself, alongside Swiss wealth manager Julius Baer and Belgian financial services firm Euroclear, argued back in January that the situation around digital asset inheritance in the country needed improvement.
For its part, Standard Chartered’s rollout of its digital asset programme in the UAE will initially focus on Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalisation both in the UAE and globally.
The company counts Brevan Howard Digital, the crypto and digital asset division of Jersey-based global hedge fund Breven Howard, as the debut client for its UAE digital asset management service.
Margaret Harwood-Jones, Standard Chartered’s Global Head of Financing and Securities Services said: “After a period of intensive work and close collaboration with regulators both regionally and globally, we are thrilled to welcome Brevan Howard Digital as the first client of our digital asset custody offering.
This announcement demonstrates the growing institutional interest in digital assets and the critical need for secure, regulated custody solutions. Our offering goes beyond simple wallet services – it is a comprehensive solution that addresses the unique challenges of digital asset custody from a regulatory, risk and prudential point of view.
“It is a game changer for institutional clients, as we can support them with our traditional expertise to navigate the complexities of the digital asset space, without compromising on the highest standards of security.”
