Standard Chartered Launches Crypto Custody Services in Europe After Securing Luxembourg License

Standard Chartered has officially launched its crypto services in Europe, following the acquisition of a digital asset license in Luxembourg. This move is part of a broader strategy to expand its digital asset offerings, leveraging the EU’s Markets in Crypto-Assets (MiCA) regulation.

The bank's newly established Luxembourg entity will serve as a regulated gateway for institutional clients seeking secure custody of cryptocurrencies.

On January 9, Standard Chartered announced its plans to operate within the MiCA framework, with former head of innovation at Societe Generale, Laurent Marochini, appointed as the CEO of the Luxembourg entity.

Initially, the crypto services will focus on custody for Bitcoin (BTC) and Ether (ETH), with plans to include additional digital assets by 2025. However, Standard Chartered's head of digital assets, Waqar Chaudry, clarified that trading services are not included in the current offering.

"We are not offering trading through Luxembourg; there is no clear timeline as that is not planned for the moment,” Chaudry stated.

Standard Chartered also highlighted the high-security measures integrated into its custody services. The bank is allocating significant risk capital and balance sheet resources to ensure robust protection of client assets.

This move follows Standard Chartered's earlier launch of crypto custody services in the United Arab Emirates (UAE) in September 2024. The UAE operations also provided access to Bitcoin and Ether for institutional clients.

The Luxembourg launch marks another step in the bank's global strategy to integrate digital assets into its financial ecosystem. Standard Chartered's digital asset license in Luxembourg aligns with its long-term strategy to cater to institutional clients. The custody service focuses on safeguarding digital assets, with the Luxembourg entity operating under stringent financial regulations.

Margaret Harwood-Jones, Standard Chartered's global head of financing, highlighted the bank's commitment to regulatory compliance and secure infrastructure. She noted that these services meet the evolving needs of institutional clients entering the digital asset market.

Standard Chartered has been exploring opportunities in the cryptocurrency sector for several years. In 2021, reports surfaced about the bank planning to establish a crypto exchange in Europe.

Additionally, Standard Chartered joined an alliance of fintech firms and financial institutions to promote best practices in the digital asset industry. The alliance included key players like Coinbase, Huobi, and Six Digital Exchange, underscoring the bank's role in advancing institutional crypto adoption.