Standard Chartered Launches Crypto Services in Europe with Luxembourg License
Global banking giant Standard Chartered has officially entered the European cryptocurrency market, launching digital asset services under a new entity in Luxembourg. This strategic move follows the bank’s successful acquisition of a digital asset license under the Markets in Crypto-Assets (MiCA) framework, a key regulatory milestone in the European Union.
Luxembourg: Standard Chartered’s Gateway to Europe
On January 9, Standard Chartered announced the establishment of a Luxembourg-based entity to serve as its regulatory foothold for offering cryptocurrency and digital asset custody services across Europe. This move aligns with the bank’s broader strategy to expand its presence in the global crypto ecosystem.
Laurent Marochini, a former innovation head at Société Générale, has been appointed as the CEO of Standard Chartered’s Luxembourg entity, underscoring the bank’s commitment to high-caliber leadership in its digital asset ventures.
Part of a Global Digital Asset Strategy
This launch marks a significant step in Standard Chartered’s ongoing expansion into the crypto custody space, following its debut of similar services in the United Arab Emirates (UAE) in September 2024. In the UAE, the bank began offering custody services for Bitcoin (BTC) and Ether (ETH), the world’s two largest cryptocurrencies by market capitalization.
Margaret Harwood-Jones, Standard Chartered’s global head of financing, expressed enthusiasm for the European expansion:
“We are thrilled to offer our digital asset custody services to the EU region, enabling us to support clients with a product that is reshaping traditional finance. As a regulated entity, we adhere to the highest security standards, paving the way for institutional clients to access the digital asset ecosystem.”
A Long Time Coming: Standard Chartered’s Crypto Journey
Standard Chartered’s foray into cryptocurrency services has been years in the making:
- In June 2024, reports emerged that the bank was developing a crypto trading service under its foreign exchange trading unit in London.
- As early as 2021, Standard Chartered had explored launching a crypto exchange in Europe, demonstrating its longstanding interest in the digital asset space.
- In September 2021, the bank joined an alliance of fintech companies and crypto leaders, including Coinbase, Huobi, and SIX Digital Exchange, to promote best practices and accelerate the adoption of cryptocurrency.
Implications of the MiCA Framework
The launch of Standard Chartered’s crypto services in Luxembourg highlights the importance of the MiCA regulation, which has established a unified regulatory framework for cryptocurrency operations in the EU. The framework is expected to attract increased institutional participation in the crypto market by providing regulatory clarity and fostering investor confidence.
What This Means for Institutional Finance
With its expansion into Europe, Standard Chartered aims to integrate digital assets into traditional finance, leveraging blockchain technology to provide secure and compliant services for institutional clients. This move positions the bank as a leader in bridging the gap between legacy financial systems and the burgeoning cryptocurrency industry.
Key Takeaways
- New Entity in Luxembourg: Standard Chartered has launched a regulated entity to provide crypto custody services in Europe under the MiCA framework.
- Global Strategy: This follows the bank’s crypto service launch in the UAE in 2024, offering custody solutions for Bitcoin and Ether.
- Leadership Appointment: Laurent Marochini, a former Société Générale executive, will lead the Luxembourg operations.
- Institutional Focus: Standard Chartered’s services target institutional clients, emphasizing security and regulatory compliance.
As Standard Chartered continues to expand its digital asset offerings, its latest move underscores the growing role of institutional players in shaping the future of cryptocurrency adoption. By prioritizing security and regulation, the bank is poised to play a key role in advancing the crypto ecosystem within the European Union and beyond.
