Bitcoin: An $840 Billion Banking Giant Ventures into Crypto

Fri 20 Oct 2023 ▪ 4 min of reading ▪ by Evans S.
Getting informed Invest

The explosive rise of Bitcoin and crypto in general is undeniable. Among the many harbingers of this new financial era, the announcement by Standard Chartered, a colossal $840 billion bank, to enter the Bitcoin arena is undoubtedly one of the most significant.

Bitcoin: The bank opts for crypto

A visionary crypto strategy in Dubai

Dubai stands out as a global financial hub. Standard Chartered has chosen it as a strategic base to launch its Bitcoin and Ether services. This decision is far from accidental. Indeed, the Emirates are seen as a safe haven in the face of the regulatory storm.

Waqar Chaudry, the bank’s executive director of innovation, emphasized the central role of the Dubai International Financial Center (DIFC) as a springboard for a global offering.

The bank is no newcomer to the region. Indeed, the UAE already serves as Standard Chartered’s regional headquarters, covering the Middle East and Africa. This presence, reinforced by the recent announcement, demonstrates the bank’s ambition to consolidate its position in the Bitcoin market.

Moreover, Dubai’s proactive approach to Bitcoin and crypto regulation offers the bank a unique opportunity to take the lead, while navigating a clear and stable regulatory framework.

Zodia Markets: a step towards Bitcoin domination

Standard Chartered’s ambitions don’t stop at mere custody of bitcoin and ether. Zodia Markets, backed by Standard Chartered Ventures, has received preliminary approval to operate as a cryptocurrency broker in Abu Dhabi.

This bold move demonstrates the bank’s desire to diversify its services and establish a firm foothold in the Bitcoin ecosystem.

Indeed, at a time when many systems, such as Signature Bank’s Signet, are experiencing failures, Standard Chartered may be considering innovative cryptographic settlement mechanisms.

This could radically transform settlement efficiency and cost management for financial institutions.

Furthermore, support and investment in innovative companies such as Zodia Markets show that Standard Chartered is not content to simply follow the Bitcoin trend, but aspires to become a leader in the field.

The importance of a clear regulatory environment

One of the biggest challenges facing financial institutions wishing to enter the Bitcoin sector is regulatory clarity. In this context, Standard Chartered’s choice to set up in the United Arab Emirates is a wise one.

The UAE has adopted a balanced and forward-thinking approach to the regulation of digital assets, offering crucial security and predictability to market players.

Bill Winters, CEO of Standard Chartered, cited regulatory clarity as a major reason for choosing the UAE to initiate the bank’s cryptocurrency services.

Furthermore, the bank’s successful experience with Zodia Custody, validated by numerous European regulators, reinforces this view.

Ultimately, the key to success in the Bitcoin industry is the ability to anticipate, adapt and act on ever-changing regulations, and Standard Chartered appears to be on the right track in this regard. Meanwhile, the EU is introducing unprecedented tax standards.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.