Binance CEO Richard Teng has expressed his support for Standard Chartered’s decision to enter the crypto industry by launching a spot trading desk for Bitcoin and Ethereum. This move by the banking giant is seen as a significant step towards institutional adoption of cryptocurrencies. Standard Chartered’s new trading desk will be part of its foreign exchange trading unit based in London, according to sources familiar with the matter.
The bank’s spokesperson stated that they have been working closely with regulators to meet the demand from institutional clients to trade Bitcoin and Ethereum. This move aligns with their strategy to support clients in the digital asset ecosystem, including access, custody, tokenization, and interoperability. However, Standard Chartered has not provided additional comments on this development.
Standard Chartered’s initiative highlights the increasing interest in cryptocurrencies among institutional investors. The bank already has investments in two crypto businesses, Zodia Custody and Zodiac Markets, which offer services like crypto custody and over-the-counter trading of digital assets. The crypto community has welcomed this news as a positive sign of mainstream adoption of cryptocurrencies.
Market experts believe that traditional financial institutions, like banks, need to adapt to the changing economic landscape, especially with the approval of crypto-related ETFs in major markets such as the US and Hong Kong. However, banks will need to navigate a complex regulatory environment when dealing with digital assets. For instance, the Basel Committee on Banking Supervision recommends assigning a 1,250% risk weight to unhedged crypto exposures, and regulations like the SEC’s Special Accounting Bulletin (SAB) 121 in the US impose additional constraints on banks regarding digital assets.
Overall, Standard Chartered’s move to launch a Bitcoin trading desk is seen as a positive development for the crypto industry, indicating a shift towards mainstream adoption by traditional financial institutions. Binance CEO’s positive response to this news further underscores the significance of this move in the market. As the crypto market continues to evolve, it will be interesting to see how other banks and financial institutions respond to this growing trend of institutional crypto adoption.