Photo credit: SC.com

Standard Chartered has begun offering digital asset custody services in the UAE, with crypto and digital asset division of the British hedge fund Brevan Howard Digital (BHD) joining as an initial client.

The bank chose the UAE to launch the business due to its "well-balanced approach to digital asset adoption and financial regulation."

On the announcement, BHD CEO Gautam Sharma said: "Standard Chartered's global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption." 

Bill Winters, Group Chief Executive of Standard Chartered Bank, added: “The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered, but for the financial services industry. 

“We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business.”

The UAE has made concerted efforts to bring the world's biggest crypto firms - including Binance and OKX - to the country's business sector, while developing virtual asset regulation to attract new forms of business to the region.

BHD established its office in Abu Dhabi in February last year, and other hedge funds including Millennium Management, ExodusPoint Capital Management and BlueCrest have set up camp in the UAE.

Standard Chartered is among several banks that have expanded their presence in the crypto sector and backs two crypto firms, Zodia Markets and Zodia Custody, who provide clients with a broad range of services including custody and trading.