Standard Chartered, a banking corporation, has established plans to launch Digital Asset Custody Services in Dubai International Financial Centre (DIFC). To this end, the organization has signed a Memorandum of Understanding (MoU) with DIFC, with senior members of both parties attending the signing ceremony at the Dubai Fintech Summit. While the plans are still subject to regulatory approval, Standard Chartered believes that its services will be focused on institutional investors and will be powered by its subsidiary, Zodia Custody.

The aforementioned crypto asset custodial platform recently secured around $36 billion in a financing round, where Japanese financial conglomerate SBI Holdings led the round with participation from SC Ventures. As a result of the investment, SBI Holdings has become the second-largest stakeholder in Zodia Custody after Standard Chartered.

Both companies expressed enthusiasm for their partnership, citing their mutual goals for the future of finance. Standard Chartered CEO Bill Winters stated: “We see digital assets as an important part of the future of financial services and we are committed to investing in the infrastructure and talent necessary to be a leader in this space. The UAE has a well-balanced approach to digital asset adoption and financial regulation, making it an ideal first market for us to launch our digital asset custody proposition.” Governor of DIFC Essa Kazim, meanwhile, said that the dubai Fintech market has, “emerged as a critical driver of innovation and economic growth,”, and the collaboration with Standard Chartered is in line with Dubai’s ambitious objective to become a top four financial hub by 2030.

The news follows the release of a Standard Chartered report that predicted that Bitcoin is set to surge as high as $100,000 in 2024. According to the bank, this is largely attributed to the foreseeable end of the US Federal Reserve’s vigorous rate hikes, and the positive developments of crypto mining operations. The head of digital asset research from SC, Geoff Kendrick tempered the optimism, however, with a warning that possible roadblocks exists which could stand in Bitcoin’s way.

Standard Chartered's move to develop digital asset witnessing solutions in Dubai is another grand example of how established firms are beginning to set their sights on the exciting potential of the crypto space. Its collaboration with DIFC could bring a major shift in the industry, as the institutional-grade crypto storage services combine with the UEA's progressive and balanced attitude for digital asset adoption and its financial regulations.



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