Standard Chartered has officially entered the digital asset custody space with the launch of its institutional-grade digital asset custody service, marking a significant milestone in its broader digital finance strategy. The bank’s move underscores growing institutional confidence in digital assets and reflects the evolving role of traditional financial institutions in the Web3 ecosystem.
Backed by regulatory approval and robust security infrastructure, this service is designed to meet the rising demand from institutional investors seeking secure, compliant, and scalable solutions for holding cryptocurrencies like Bitcoin and Ethereum.
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Digital Asset Custody Service Launch in the UAE
Standard Chartered launched its digital asset custody offering in the United Arab Emirates (UAE), operating under a license granted by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC). This strategic move positions the bank at the forefront of regulated digital finance innovation in the Middle East.
The service initially supports Bitcoin (BTC) and Ethereum (ETH) — the two largest cryptocurrencies by market capitalization — providing institutional clients with a trusted gateway to participate in the digital economy.
This launch follows a Memorandum of Understanding signed in May 2023 with DFSA, paving the way for compliance with local regulations and reinforcing the bank's commitment to operating within clear legal frameworks.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the long-term vision behind the initiative:
“The launch of our digital asset custody service is not just significant for Standard Chartered — it represents a pivotal moment for the financial services industry. We believe digital assets are not a passing trend, but a fundamental transformation of the financial landscape. With this new offering, we’re positioning ourselves at the forefront of the next evolution in custody.”
Why Custody Matters in Digital Finance
Unlike traditional asset custody, where physical or electronic records represent ownership, digital asset custody revolves around the secure management of private keys — cryptographic credentials that grant control over blockchain-based assets.
Losing access to these keys means losing access to the assets entirely, with no central authority to recover them. This is where professional custodians like Standard Chartered come in.
By leveraging advanced encryption, multi-party computation (MPC), cold storage solutions, and strict access controls, institutional custodians ensure that private keys remain protected from cyber threats, insider risks, and operational failures.
Margaret Harwood-Jones, Global Head of Funding and Securities Services, highlighted the uniqueness of their offering:
“Our product goes beyond simple wallet services. It’s a comprehensive solution addressing the unique challenges of digital asset custody from regulatory, risk, and prudential perspectives. For institutional clients, this is a game-changer.”
First Client: Brevan Howard Digital
Brevan Howard Digital, the cryptocurrency arm of global macro and digital asset investment firm Brevan Howard, has been named as the first client to utilize Standard Chartered’s custody solution.
As a sophisticated institutional player with deep expertise in both traditional finance and digital assets, Brevan Howard’s adoption serves as a strong endorsement of the service’s reliability and regulatory soundness.
Harwood-Jones noted that the launch was the result of intensive development and close collaboration with regulators across jurisdictions — a testament to the complexity and importance of compliance in this emerging domain.
👉 See how top investment firms are integrating crypto into their portfolios securely.
Strategic Expansion Plans
While currently operational in Dubai, Standard Chartered has signaled intentions to expand its digital asset custody footprint to other global financial hubs.
Plans were previously underway through its joint venture Zodiac Custody to offer services in Ireland for European institutional clients. Although those efforts are still evolving, they reflect the bank’s long-term ambition to build a globally interconnected custody network.
There were also reports that Zodia, another subsidiary focused on crypto custody, had been in discussions with Hong Kong’s Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) to establish a regulated presence in Asia’s leading financial center.
These moves align with broader industry trends: as more institutions seek exposure to digital assets, demand for regulated, bank-grade custody solutions continues to rise.
Benefits of Professional Digital Asset Custody
1. Reduced Risk and Operational Complexity
Self-custodying digital assets requires technical expertise, constant vigilance, and robust infrastructure — challenges that can deter even experienced investors. A licensed custodian simplifies this process by handling key management, transaction signing, and cybersecurity protocols on behalf of clients.
This lowers entry barriers and allows investors to focus on strategy rather than security logistics.
2. Enhanced Security Infrastructure
Digital assets face persistent threats from hacking, phishing, and internal breaches. Institutional custodians invest heavily in state-of-the-art security measures such as air-gapped systems, biometric access controls, hardware security modules (HSMs), and distributed key storage.
These defenses are often beyond the reach of individual investors or smaller firms.
3. Legal Recourse and Insurance Coverage
In the event of loss due to theft or system failure, unregulated or self-custodied assets typically offer little to no recourse. In contrast, licensed custodians operate under legal frameworks that may provide liability coverage and work with reputable insurers to protect client holdings.
This adds an essential layer of trust and financial protection.
4. Safer Than Exchange Storage
Holding large amounts of crypto on exchanges exposes users to counterparty risk — exchanges can be hacked, mismanaged, or shut down by regulators. Custodial services separate asset ownership from trading platforms, significantly reducing exposure to such risks.
5. Improved Operational Efficiency
Professional custody enables seamless integration with existing financial workflows, including reporting, auditing, compliance monitoring, and settlement processes. This enhances transparency and facilitates smoother interactions with auditors, tax authorities, and regulators.
Frequently Asked Questions (FAQ)
Q: What is digital asset custody?
A: Digital asset custody refers to the secure storage and management of private keys that control cryptocurrencies like Bitcoin and Ethereum. Unlike traditional banking custody, it focuses on cryptographic security rather than physical vaults.
Q: Why do institutions need custodians for crypto?
A: Institutions require regulated custody solutions to meet compliance standards, mitigate cybersecurity risks, ensure auditability, and gain board-level approval for digital asset investments.
Q: Is Standard Chartered’s service available worldwide?
A: Currently, the service is live in Dubai under DFSA regulation. Expansion plans are underway for other financial centers including Europe and Asia.
Q: Which cryptocurrencies does Standard Chartered support?
A: The initial rollout supports Bitcoin (BTC) and Ethereum (ETH), with plans to add more digital assets in the future.
Q: How does this impact retail investors?
A: While primarily targeting institutions, increased institutional participation often leads to greater market stability, improved infrastructure, and eventually more accessible products for retail users.
Q: Can individuals use Standard Chartered’s custody service?
A: The current offering is designed for institutional clients such as hedge funds, asset managers, and fintech firms. Retail access is not yet available.
Standard Chartered’s entry into digital asset custody signals a maturing ecosystem where legacy finance meets decentralized technology. As adoption grows, expect more banks to follow — but few with the global reach and regulatory credibility of this UK-based multinational.
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With strong infrastructure, regulatory alignment, and a clear strategic vision, Standard Chartered is helping bridge traditional finance and the emerging digital economy — one private key at a time.