Standard Chartered Bank plans to provide cryptocurrency custody services to Singapore institutional

Standard Chartered Bank plans to launch institutional crypto asset custody services in Singapore

Core points:

• Standard Chartered Bank plans to launch institutional-level crypto asset custody services in Singapore, covering specific cryptocurrencies, stablecoins and tokenized real-world assets that meet regulatory requirements.
• This expansion of Singapore's business will strengthen Standard Chartered Bank's institutional custody network in Asia, Europe and the Middle East, and enhance competitiveness through the banking service system.
• Integration plans for Standard Chartered Bank's Zodia Custody are advancing as Standard Chartered Bank accepts a non-binding takeover offer, while Zodia is also expanding its regulated stablecoin services in Europe.

Standard Chartered Bank plans to expand its institutional crypto asset custody business to Singapore, adding digital asset custody functions to its existing banking services. The proposed services will cover selected cryptocurrencies, stablecoins, and tokenized real-world financial assets and will need to meet applicable regulatory requirements.

According to the bank's announcement on Thursday, its Singapore branch will provide specialized custody services to institutional investors managing a variety of digital assets. The expansion will also connect digital asset custody with Standard Chartered Bank's existing financing and securities services in Singapore.

Standard Chartered Bank expands institutional crypto asset custody layout in major financial markets

Singapore will become Standard Chartered Bank's new base for its digital asset custody business, alongside its existing operating networks in the United Arab Emirates, Luxembourg and Hong Kong. Through this expansion, the bank plans to provide institutional clients with services covering all stages of asset management activities.

Patrick Lee, CEO of Standard Chartered Bank Singapore, ASEAN and South Asia, pointed out that Singapore is an important financial innovation center. He emphasized that the country has a mature institutional ecosystem and a growing demand for reliable digital asset services.

In addition, Lee also emphasized the importance of infrastructure to support safe asset transfers, custody arrangements, and tokenized financial instrument services. These capabilities form part of Standard Chartered Bank's plan to support digital asset activities in different market institutions.

The proposed Singapore service will cover three types of assets: cryptocurrencies, stablecoins, and tokenized representations of real-world financial assets. Currently, Standard Chartered Bank has not specified which specific single assets Singapore branch will support in the program's services.

Zodia Custody integration forms part of Standard Chartered Bank's broader digital asset strategy

Standard Chartered Bank's expansion in Singapore follows related developments in Zodia Custody, an institutional crypto asset custodian that was jointly established with Northern Trust in 2020. In April this year, Bloomberg reported that Standard Chartered Bank was considering integrating some of Zodia Custody's business into its corporate banking division.

Subsequently, Standard Chartered Bank confirmed in May that its non-binding offer to absorb Zodia's crypto asset custody business had been accepted. The development is part of the bank's efforts to incorporate more institutional digital asset custody into its banking structure.

Zodia Custody has already established operations in Singapore and launched an institutional digital asset service in the country in September 2023. Its regional operations subsequently expanded to Hong Kong, adding another Asian financial center to its institutional custody network.

In June this year, Zodia obtained a payment institution license in Luxembourg, expanding its regulated stablecoin custody and transfer capabilities. The authorization allows the company to provide such services throughout the EU under applicable regulatory frameworks.

As a result, Standard Chartered Bank's planned Singapore services will further expand its institutional custody influence in Asia, Europe and the Middle East. The bank said the proposed services would need to meet regulatory requirements, but had not announced a specific launch date.