Standard Chartered Expands Crypto Custody Services to Europe Under MiCA Regulation

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British banking giant Standard Chartered has taken a significant step into the European crypto market by establishing a new entity in Luxembourg. This move is part of the bank’s global strategy to expand its cryptocurrency and digital asset services, leveraging the recently implemented Markets in Crypto-Assets (MiCA) Regulation in the European Union.

Key Highlights of the Expansion

1. Focus on Crypto Custody Services

• Standard Chartered's initial offering will include crypto custody services for Bitcoin (BTC) and Ethereum (ETH), with plans to expand the list of supported assets by 2025.
• The bank clarified that no trading services will be offered at this stage.

2. Leadership Under Industry Veteran

• Laurent Marochini, former head of innovation at Société Générale, has been appointed as CEO of Standard Chartered Luxembourg.
• Marochini expressed his commitment to delivering excellent service to clients and stakeholders in his new role.

3. Compliance with MiCA Regulation

• The launch in Luxembourg serves as Standard Chartered’s regulatory entry point into the EU.
• The MiCA framework, which came into effect in early January 2025, is aimed at creating a harmonized regulatory environment for crypto businesses across the EU.

4. Security and Risk Management

• The custody services will be provided in-house by Standard Chartered, backed by significant risk capital and a robust balance sheet.
• The bank emphasized adherence to high-security standards as a regulated entity in Europe.

A Part of a Larger Strategy

1. Global Expansion Efforts

• This move follows Standard Chartered's successful launch of crypto custody services in the United Arab Emirates (UAE) in September 2024.
• The UAE offering also included custody solutions for BTH and ETH, marking the bank’s growing influence in the digital asset space.

2. Earlier Involvements in Crypto

• Standard Chartered has been exploring the crypto sector for years. It was part of an alliance with industry leaders like Coinbase and Huobi in 2021 to accelerate crypto adoption and best practices.
• The bank also operates Zodia Custody and Zodia Markets, further cementing its position in the crypto ecosystem.

3. MiCA’s Role in Shaping Europe’s Crypto Landscape

• The MiCA Regulation is transforming the EU's crypto market by providing a clear legal framework for companies to operate.
• In addition to Standard Chartered, other firms like MoonPay, BitStaete, and Socios.com have obtained MiCA licenses, showcasing the growing appeal of this regulatory environment.
• The regulation is expected to attract more global players seeking compliance to access the lucrative European crypto market.

Looking Ahead

Standard Chartered’s Luxembourg entity is a significant step toward integrating traditional banking with digital assets. By focusing on crypto custody and adhering to the strict requirements of MiCA, the bank aims to cater to institutional clients while ensuring security and trust in the rapidly evolving crypto landscape. With further asset expansions and potential exploration of trading services, Standard Chartered is positioning itself as a key player in the convergence of traditional finance and blockchain technology.

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