- Standard Chartered has established a new entity in Luxembourg to provide secure crypto and digital asset custody services across the European Union.
- Laurent Marochini, former chief innovation officer at Societe Generale, has been appointed to lead the Luxembourg entity.
- Competing with financial giants such as BNY Mellon and Fidelity, Standard Chartered aims to capture market share in a cryptocurrency custody sector that is projected to surpass $10 trillion in assets by 2030.
Chartered Standardone of the world’s leading financial institutions, has announced the establishment of a new entity in Luxembourg to offer digital and crypto asset custody services across the European Union (EU). This strategic move reflects the bank’s increasing focus on capturing a share of the expanding digital asset market, driven by growing institutional interest in cryptocurrencies.
The new Luxembourg entity underlines Standard Chartered’s commitment to leveraging its global reach and financial expertise to address growing demand for secure digital asset services. With the European Union tightening its regulatory framework for crypto assets under the Cryptoasset Markets (MiCA) regulation, Standard Chartered’s entry into this market is timely and strategic.
Take advantage of institutional demand
Standard Chartered’s focus on digital asset custody aligns with a broader trend among traditional financial institutions seeking to capitalize on the burgeoning crypto ecosystem. As institutional investors continue to diversify their portfolios with digital assets, demand for reliable custody solutions has increased.
Custody of the zodiacStandard Chartered’s cryptocurrency custody subsidiary, has played a key role in the bank’s digital asset initiatives. In March 2023, Zodia registered its Irish unit with the Luxembourg financial regulator, laying the foundations for the establishment of this new entity. The move to Luxembourg, often considered a hub of financial innovation in Europe, positions Standard Chartered to serve institutional clients navigating the complex EU regulatory landscape.
Leadership and experience
Laurent Marochini, An experienced professional with a track record in financial innovation, will lead the Luxembourg entity.
Marochini, who previously served as head of innovation at Societe Generale, brings extensive experience in financial technology and digital assets to his new role. His appointment signals Standard Chartered’s commitment to attracting top talent to lead its crypto initiatives.
Under Marochini’s leadership, the Luxembourg entity aims to offer a comprehensive set of custody services for institutional clients. These services are expected to include secure storage, transaction processing, and regulatory compliance support, designed to meet the unique needs of digital asset investors.
Standard Chartered Global Crypto Strategy
The creation of the Luxembourg entity follows the recent decision by Standard Chartered launch of digital asset custody services in the United Arab Emirates (UAE). The United Arab Emirates has become a global hub for cryptocurrency and blockchain innovation, and the bank’s presence in the region reflects its ambition to be a key player in the global digital asset market.
Standard Chartered’s crypto strategy is anchored by Zodia Custody, which has been at the forefront of providing institutional-grade digital asset solutions. Established in partnership with Northern Trust, Zodia Custody combines the reliability of traditional banking with the agility of blockchain technology. The company’s focus on strong security measures and regulatory compliance has made it a trusted partner for institutional investors venturing into the crypto space.
Regulatory landscape and challenges
Standard Chartered’s expansion into the EU comes at a crucial time, as the region’s regulatory environment for digital assets is undergoing a significant transformation. The MiCA regulation, which will come into force in 2025, introduces a harmonized legal framework for crypto assets across the EU. This regulatory clarity is expected to boost institutional confidence in digital assets, creating new opportunities for custodians like Standard Chartered.
However, navigating the changing regulatory landscape poses challenges. The MiCA framework imposes strict requirements on custodians, including increased due diligence, capital adequacy and operational resilience. Standard Chartered’s experience in navigating complex regulatory environments, coupled with its established reputation in traditional finance, positions it well to address these challenges.
Competitive Landscape of the Crypto Custody Market
Standard Chartered is not alone in recognizing the potential of the cryptocurrency custody market. Large financial institutions such as BNY Mellon, Fidelity Digital Assetsand Citibank We have also made significant progress in this space. These companies are leveraging their existing infrastructure and expertise to deliver secure and compliant solutions for institutional clients.
In this competitive landscape, Standard Chartered’s focus on innovation and strategic partnerships sets it apart. By leveraging the capabilities of Zodia Custody and leveraging the experience of industry leaders such as Laurent Marochini, the bank aims to compete with established players and capture market share in the rapidly evolving digital asset ecosystem.
Market trends and future prospects
The global digital asset market is expected to grow exponentially in the coming years, driven by growing adoption among institutional investors. According to a report by 21.coThe total assets under custody in the crypto market are expected to exceed 10 trillion dollars by 2030highlighting the immense growth potential for custodians.
Standard Chartered’s proactive approach to expanding its crypto custody footprint reflects its confidence in the long-term viability of digital assets. By establishing a presence in key markets such as the EU and the UAE, the bank is positioning itself as a trusted partner for institutional clients seeking secure and compliant solutions.
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