Standard Chartered plans European crypto exchange after HSBC says ‘no’ to industry
Standard Chartered is now planning to take its “first steps outside the US”. The British multinational banking and financial services company confirmed plans to launch a crypto exchange in Europe, following on from its rejection by HSBC.
Standard Chartered Plc, one of the largest banking groups in Asia, has announced plans to launch Europe’s first crypto trading platform, an initiative that will be funded mainly by a group of private investors, according to the business daily Nikkei. The group will be led by Mark Holyoak, an investment banker with a background in technology investments, and will include venture capitalists Jason Hsu and Andrew Bounds, who have stakes in Blockchain Capital, a hedge fund that has invested in Coinbase, one of the largest crypto exchanges, along with big data companies like Kaggle.
While other banks are showing hesitance towards cryptocurrency exchanges, Standard Chartered is planning to set up a new one in Europe, according to a report in the Financial Times. This could be critical for a number of reasons, including the fact that the UK is one of the few places in the world where cryptocurrency trading is legal.
British multinational banking and financial services company Standard Chartered (StanChart) is launching a cryptocurrency exchange, it has been revealed. As reported by Reuters on 2. According to the June report, StanChart has partnered with Hong Kong-based exchange operator BC Technology Group to launch a platform for the UK and European institutional markets.
Standard Chartered: The crypto currency will be
The bank has long been interested in the cryptocurrency space, and news of this launch follows several attempts to enter the cryptocurrency trading arena. The project is being managed by SC Ventures, the bank’s innovation arm, but a launch date has not yet been announced. We think digital assets are not far off and will be adopted by the institutional market as a highly relevant asset class, Alex Manson, head of SC Ventures, told Reuters. This makes StanChart the latest major financial player to engage in cryptocurrency trading. The timing is right – after Bitcoin (BTC) lost 50% of its dollar value, taking most altcoins with it. Earlier, another banking giant, HSBC, had publicly stated that it was not interested in entering the market, while its competitors were trying to attract institutional clients with their own offerings. At the same time, US national banks are expected to open bitcoin exchanges en masse by the end of the year. 1 day candlestick chart of Standard Chartered share price. Source: TradingView
According to Cointelegraph, experts believe that ultimately the question of legacy fund participation is a matter of if, not when. Raphael Polanski, managing director of Boerse Stuttgart Digital Ventures GmbH, told Cointelegraph last week that cryptocurrency curation will continue to attract interest from traditional banks. However, there may be a greater reluctance to do so. We foresee a lot of strategic moves in the market where traditional banks will invest in cryptocastodians instead of building their own solutions, he said. StanChart, for its part, launched cryptocurrency custodian Zodia in late 2020. Zodia’s mission is to be a force for good by raising industry standards for digital assets in a sustainable, secure and responsible way, Manson said in a press release at the time.Standard Chartered has announced plans to launch a crypto exchange in Europe after HSBC said it would no longer serve clients in the industry. The bank, one of the UK’s biggest lenders, will launch a crypto trading platform in the autumn, the Financial Times reports.. Read more about standard chartered custody crypto and let us know what you think.