Bloomberg reported yesterday (21) that Standard Chartered Bank is setting up a trading platform for Bitcoin and Ethereum, making it one of the first international banking giants to venture into cryptocurrency spot trading.
With the development of blockchain technology and the cryptocurrency market, and the approval of Bitcoin and Ethereum spot ETFs in the US and Hong Kong this year, more and more financial institutions are beginning to accept and recognize cryptocurrencies. Traditional commercial banks and financial institutions such as Goldman Sachs and Standard Chartered are gradually offering cryptocurrency-related services to their clients.
According to Bloomberg, Standard Chartered Bank is in the process of establishing a trading platform for Bitcoin and Ethereum, which will operate under the bank’s foreign exchange trading department and may soon start operations in London.
Goldman Sachs and other banks have been trading cryptocurrency derivatives for years, but strict regulatory requirements prevent banks from directly trading underlying assets. The Basel Committee on Banking Supervision has recommended that banks must apply a 1,250% risk weight to “any unhedged cryptocurrency positions,” making it difficult for banks to profit.
However, Standard Chartered Bank stated in a statement that they will strive to provide customers with cryptocurrency custody, trading, and other services in a regulatory compliant manner. The bank has been actively developing its cryptocurrency business in recent years and currently holds stakes in two cryptocurrency companies, Zodia Custody and Zodia Markets, which provide custody and over-the-counter trading services.
In addition, although Standard Chartered is a traditional commercial bank, it has repeatedly predicted that Bitcoin will shine in this bull market. For example, in early May of this year, Standard Chartered Bank stated in a research report that Bitcoin will benefit from US debt issues and Trump’s election, pushing the price to $150,000 by the end of the year and reaching $200,000 by the end of 2025.