Standard Chartered Enters European Crypto Market with Custody Services in Luxembourg

Standard Chartered Expands Crypto Services with New Digital Asset Custody Offering in Luxembourg

One of the world’s largest financial institutions, Standard Chartered, has entered the European cryptocurrency market, launching digital asset custody services after securing a regulatory license in Luxembourg.

The bank is strategically expanding into the growing crypto space to meet the evolving needs of institutional investors in Europe.

Luxembourg Becomes Gateway for Standard Chartered's Crypto Offering in EU

Standard Chartered is setting up a new entity in Luxembourg, which will act as the regulatory entry point for offering cryptocurrency and digital asset custody services across the European Union.

Laurent Marochini, a former executive at Société Générale, has been appointed as the CEO to lead this new operation.

Laurent Marochini, appointed CEO of Standard Chartered Luxembourg on 9 January 2025, expressed his commitment to delivering excellence for clients, the team, and stakeholders.

The bank aims to capitalise on the recent implementation of the Markets in Crypto-Assets (MiCA) Regulation, a key regulatory framework in the EU for cryptocurrencies.

No Trading, Just Custody: What Does This Mean for European Investors?

At the launch of this service, Standard Chartered will offer custody services exclusively for Bitcoin and Ether, the two largest cryptocurrencies by market capitalisation.

Custody services involve the secure storage and protection of digital assets on behalf of clients.

However, crypto trading will not be part of this initial offering.

Waqar Chaudry, Standard Chartered’s head of digital assets, stated,

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

The bank is positioning itself as the only major international financial institution to provide such services, backed by its substantial risk capital and balance sheet, ensuring a high level of security for clients’ assets.

Expanding Crypto Custody Services Globally: What’s Next?

Standard Chartered’s Luxembourg launch follows its successful entry into the UAE market in September 2024, where the bank began offering crypto custody services to institutional clients.

Margaret Harwood-Jones, the bank’s global head of financing, expressed excitement about the new service in Europe, saying,

“We are incredibly proud to be paving the way for our institutional clients to access the digital asset ecosystem.”

She also assured that these services would comply with strict security standards in line with European regulations.

Looking ahead, the bank plans to expand its crypto custody offerings by including more digital assets later in 2025.

Why Did Standard Chartered Choose Luxembourg?

The decision to establish its European crypto business in Luxembourg aligns with the country’s growing status as a hub for digital assets in Europe.

Luxembourg’s favourable regulatory environment and the newly implemented MiCA regulations offer the perfect framework for Standard Chartered to launch its services while ensuring the security of institutional investors' crypto assets.

Long-Term Strategy: Beyond Custody to Trading?

While crypto custody services are the focus for now, the bank has been laying the groundwork for broader involvement in the crypto space for several years.

Reports from 2024 suggested that Standard Chartered was also working on launching crypto trading services, with plans to integrate them into its foreign exchange trading unit.

These developments show the bank's long-term commitment to offering a full suite of digital asset services, spanning custody, trading, tokenisation, and interoperability.

In 2021, Standard Chartered joined an alliance with fintech firms and banks to foster best practices in the cryptocurrency industry.

The collaboration involved major players like Coinbase, Huobi, and SIX Digital Exchange, all of whom are working to create a regulated ecosystem for digital assets.

What’s Driving Standard Chartered's Entry into Crypto?

The bank's decision to offer crypto custody services is largely driven by increasing demand from institutional clients for secure ways to store digital assets.

As cryptocurrencies like Bitcoin and Ether continue to grow in popularity, financial institutions like Standard Chartered are recognising the need for a trusted custodian in this space.

With its global presence and regulatory expertise, the bank is adapting to the changing dynamics of traditional finance.

Through this move, Standard Chartered aims to solidify its role as a bridge between traditional finance and the emerging digital asset ecosystem, providing institutional investors with secure access to the evolving world of cryptocurrency.