Standard Chartered Bank is setting up a trading desk for Bitcoin and Ether, making it one of the first international banks to introduce spot trading of cryptocurrencies, Bloomberg reported, citing people familiar with the matter.

Two people familiar with the matter revealed that the new cryptocurrency trading desk is about to start operations and will form part of the bank’s foreign exchange trading unit. The unit will operate out of London, according to a person familiar with the matter.

Banks including Goldman Sachs have been trading cryptocurrency derivatives for years, but strict regulations have prevented them from trading the underlying assets directly. The Basel Committee on Banking Supervision has proposed that banks must apply a 1,250% risk weight to any unhedged cryptocurrency exposure, making it difficult for banks to generate profits.

Standard Chartered said in an emailed statement:

“We have been working closely with regulators to support institutional client demand for trading Bitcoin and Ethereum, in line with our strategy of supporting clients across the wider digital asset ecosystem, from access and custody to tokens ation and interoperability.”

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