Standard Chartered has officially launched its digital asset custody service, marking a pivotal step in its digital finance strategy. As one of the first major traditional banks to enter the institutional crypto custody space, this move underscores growing confidence in digital assets as a legitimate and enduring part of the global financial ecosystem.
The new service, initially available in the United Arab Emirates (UAE), supports Bitcoin and Ethereum — the two largest cryptocurrencies by market capitalization. Authorized by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC), this launch represents a significant milestone in Standard Chartered’s broader digital asset ambitions.
👉 Discover how leading financial institutions are securing digital wealth in 2025.
Digital Asset Custody: A Strategic Move for Institutional Adoption
Digital asset custody differs fundamentally from traditional asset custody. Instead of holding physical securities or cash, custodians safeguard private keys — the cryptographic credentials that control access to blockchain-based assets. By leveraging advanced encryption, multi-signature protocols, and cold storage solutions, trusted custodians ensure that only authorized parties can access and transfer digital holdings.
This infrastructure is critical for institutional investors who require regulatory compliance, operational security, and auditability — all of which are difficult to achieve when self-custodying digital assets.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the strategic importance of this development:
“The launch of our digital asset custody service is not just significant for Standard Chartered — it’s a landmark 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.”
The bank cited the UAE’s progressive yet balanced regulatory framework as a key reason for launching in Dubai. The DIFC has emerged as a global hub for fintech and digital innovation, offering clear licensing pathways and strong investor protections — making it an ideal environment for pioneering financial services like crypto custody.
Initial Offerings and First Client Partnership
At launch, the service supports Bitcoin (BTC) and Ethereum (ETH), reflecting strong institutional demand for these established digital assets. The bank plans to expand support to additional tokens in the future, contingent on market demand and regulatory clarity.
Brevan Howard Digital, the cryptocurrency arm of global macro investment firm Brevan Howard, has been named the first client. This partnership signals strong traction among sophisticated institutional players seeking secure, compliant access to digital markets.
Margaret Harwood-Jones, Global Head of Transaction Banking at Standard Chartered, highlighted the comprehensive nature of the offering:
“After intensive development and close collaboration with regulators globally, we’re proud to welcome Brevan Howard Digital as our first client. Our solution goes beyond simple wallet services — it addresses the unique challenges of digital asset custody from regulatory, risk, and prudential perspectives. For institutional clients, this is a game-changing product.”
Her comments underscore that modern digital custody isn’t just about storage — it’s about integrating blockchain-native assets into traditional financial workflows with full compliance, transparency, and resilience.
Why Digital Asset Custody Matters
As interest in digital assets grows among hedge funds, family offices, pension funds, and asset managers, secure custody becomes a foundational requirement. Here’s why professional custody services are essential:
1. Reduced Risk and Complexity
Managing private keys securely requires specialized knowledge and infrastructure. For most institutions, outsourcing custody simplifies operations, reduces technical burden, and lowers the risk of human error or internal fraud.
2. Enhanced Security
Digital assets face persistent threats from cyberattacks, phishing, and malware. Licensed custodians employ military-grade security measures — including hardware security modules (HSMs), air-gapped systems, and biometric access controls — far beyond what most organizations can implement independently.
3. Legal Recourse and Insurance Coverage
If assets are lost due to a breach or operational failure, clients of licensed custodians may have legal recourse and insurance claims available. In contrast, self-custodied assets often lack recovery mechanisms, leaving investors fully exposed.
4. Safer Than Exchange Storage
Storing crypto on exchanges poses significant risks. Exchanges are frequent targets for hackers and may suffer insolvency or regulatory shutdowns (as seen with FTX and others). Custodial solutions separate storage from trading, enhancing asset protection.
5. Operational Efficiency
Professional custodians handle technical complexities such as key rotation, disaster recovery, and multi-jurisdictional compliance. This allows investors to focus on strategy rather than infrastructure.
👉 See how top-tier security protects institutional crypto investments today.
Global Expansion Plans and Regulatory Strategy
While launched in Dubai, Standard Chartered’s ambitions extend far beyond the UAE. The bank previously explored launching custody services through its subsidiary Zodiac Custody in Ireland and Zodia in Hong Kong, engaging with regulators including the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA).
These efforts reflect a coordinated global strategy to offer regulated digital asset services across major financial centers. The bank aims to bridge traditional finance (TradFi) with decentralized finance (DeFi), enabling seamless integration of digital assets into mainstream portfolios.
Regulatory alignment remains a core challenge. While jurisdictions like Dubai and Switzerland have established clear frameworks, others are still developing rules for crypto custody. Standard Chartered’s approach — working closely with regulators from the outset — sets a precedent for responsible innovation.
Frequently Asked Questions (FAQ)
Q: What is digital asset custody?
A: Digital asset custody involves securely storing the private keys that control access to cryptocurrencies like Bitcoin and Ethereum. Unlike traditional custody, it focuses on cryptographic security rather than physical vaults.
Q: Why do institutions need custody services for crypto?
A: Institutions require high levels of security, compliance, audit trails, and insurance — all of which professional custodians provide. Self-custody is risky and operationally complex for large-scale investors.
Q: Is Standard Chartered’s custody service available worldwide?
A: Currently, the service is live in the Dubai International Financial Centre (DIFC). Expansion to other regions like Hong Kong and Ireland is under exploration.
Q: Which cryptocurrencies does Standard Chartered support?
A: Initially, the service supports Bitcoin (BTC) and Ethereum (ETH), with plans to add more digital assets based on demand and regulation.
Q: How does this impact retail investors?
A: While currently targeted at institutions, wider adoption by banks like Standard Chartered increases legitimacy and may lead to more accessible crypto products for retail users in the future.
Q: Can I use this service as an individual investor?
A: The current offering is designed for institutional clients such as hedge funds and asset managers. Retail access is not yet available.
The Road Ahead
Standard Chartered’s entry into digital asset custody signals a maturing market where even conservative financial institutions recognize the long-term value of blockchain-based assets. With robust infrastructure, regulatory engagement, and strategic partnerships, the bank is helping build trust and accessibility in the evolving digital economy.
As adoption accelerates, expect more banks to follow suit — integrating digital assets into their core offerings while maintaining fiduciary responsibility and security standards.
👉 Learn how financial leaders are preparing for the future of asset management.
The convergence of traditional finance and digital assets is no longer theoretical — it’s underway. And with pioneers like Standard Chartered leading the charge, the bridge between old and new finance is becoming stronger every day.
Core Keywords: digital asset custody, Bitcoin, Ethereum, institutional crypto adoption, Standard Chartered, crypto security, regulated crypto services, Dubai DIFC