[Binance CEO welcomes Standard Chartered Bank’s launch of Bitcoin trading platform]
Binance CEO Richard Teng welcomes Standard Chartered Bank’s entry into the cryptocurrency industry. The banking giant is reportedly preparing to launch a spot trading platform for Bitcoin and Ethereum.
The move would make Standard Chartered one of the first major traditional financial institutions to offer direct trading services for top digital assets, potentially posing competition to Binance’s dominance in the industry.
Binance, the largest cryptocurrency exchange by trading volume, has faced several regulatory challenges over the past few years. According to data from Kaiko, more than 53% of Bitcoin’s centralized trading volume occurs on the Binance platform.
According to Bloomberg, sources familiar with the matter revealed that the new platform will be part of Standard Chartered Bank’s foreign exchange trading unit and operate in London. A spokesman for the bank said: “We have been working closely with regulators to support institutional client demand for trading Bitcoin and Ethereum, which is in line with our strategy to support clients across the wider digital asset ecosystem, including access, custody, proxy Monetization and interoperability.”
Standard Chartered’s move reflects growing institutional demand for cryptocurrency adoption and highlights the bank’s commitment to the emerging industry. Currently, Standard Chartered has stakes in two cryptocurrency business companies, Zodia Custody and Zodiac Markets, which provide cryptocurrency custody and over-the-counter trading services.
The crypto community welcomed the bank’s move as an important step towards institutional adoption of cryptocurrencies.
Market experts explained that the move is not surprising as traditional financial institutions such as banks need to adapt to the current economic environment, especially after major markets such as the United States and Hong Kong approved multiple cryptocurrency-related ETFs.
Nonetheless, banks face a strict regulatory environment regarding their exposure to digital assets.
The Basel Committee on Banking Supervision recommended that banks assign a 1,250% risk weight to unhedged crypto asset exposures. In the United States, the SEC’s Special Accounting Announcement (SAB) 121 imposes additional restrictions on banks involved in digital assets.
