London-based banking group Standard Chartered (also StanChart) has launched a spot trading feature for Bitcoin and Ether for its customers in the United Kingdom (UK). The initiative targets institutional clients, including corporate investors, and asset managers. Notably, the development signals a growing acceptance of crypto assets within traditional finance.
StanChart Launches Crypto Trading
The pilot move positions Standard Chartered as a pioneering player among major global banks that are embracing crypto. Institutional platforms, including FalconX, which has already partnered with StanChart for FX and settlements in regions such as Singapore, will likely benefit from the initiative.
According to a Reuters report, the firm claims it’s the first time a “global systemically important bank” has offered regulated, on-chain trading of Bitcoin and Ether. Interestingly, the feature operates via the regular, familiar foreign exchange (FX) interface, which could make it user-friendly for its targeted audience.
The bank plans to introduce non-deliverable forwards (NDFs) for digital assets soon, further expanding its suite of crypto services. For context, NDFs are a type of financial derivative used in foreign exchange markets. Commenting on the initiative, Standard Chartered’s Chief Executive Officer (CEO), Bill Winters, said:
“As client demand accelerates further, we want to offer clients a route to transact, trade, and manage digital asset risk safely and efficiently within regulatory requirements.”
TradFi Adopts Blockchain Tech
Traditional financial institutions are increasingly embracing blockchain technology. CTW reported that major U.S. banks are collaborating on a joint stablecoin initiative. The firms aim to facilitate faster cross-border payments and increased liquidity via blockchain technology. Interestingly, favorable regulations have fueled the trend.
On the other hand, crypto firms are also seeking to integrate themselves within the traditional finance sector by applying for U.S. national or trust bank charters. Leading players such as Ripple, Circle, and BitGo are pursuing full federal banking licenses, which would enable them to offer custody, payments, and lending services under federal oversight.
Nonetheless, not all regulators support the trend. For example, Bank of England Governor Andrew Bailey has publicly warned against privately issued stablecoins, urging banks to issue tokenized deposits instead. He cautioned that stablecoins could destabilize the financial system and siphon deposits from core banking activities.
