Standard Chartered Debuts Digital Asset Custody in the UAE

The United Arab Emirates’ (UAE) is strengthening its position as a global hub with the recent launch of Standard Chartered’s new digital asset custody service. The announcement was made Tuesday through a press release.

The Dubai Financial Services Authority (DFSA), which operates within the Dubai International Financial Centre (DIFC), granted the license a little over a year after the memorandum of understanding between the concerned parties was signed in May 2023. Brevan Howard Digital, the crypto and digital asset division of Brevan Howard is a main client.

Standard Chartered’s new service will enable clients to keep their digital assets safe. The bank has lauded the UAE for its balanced approach to digital asset adoption and financial regulation — key reasons why it was chosen for the launch.

MENA Becoming a Popular Crypto Space

According to Gulf Business, the Middle East is one of the fastest-growing cryptocurrency markets in the world, with a value pegged at $389.8 billion from July 2022 to June 2023.

A report released by analytics firm Chainalysis in 2023 showed that the Middle East & North Africa (MENA) ranked as the sixth largest crypto economy among the world’s regions, with an estimated $389.8 billion in on-chain value received in the same period mentioned. These accounted for around 7.2% of the global transaction volume at the time.

UAE Also Leading the Way

UAE is forging forward swiftly in the global crypto space, as well, by passing innovation-friendly regulatory frameworks. Gautam Sharma, the chief executive officer of Brevan Howard Digital, noted that Standard Chartered’s initiative will significantly help the UAE.

“This is a significant win for the UAE and the wider digital asset industry. The development of the institutional infrastructure within the asset class and region supports our established business within the ADGM (Abu Dhabi Global Market) in its continued expansion and our ongoing efforts toward improving and reinforcing standards in the digital asset ecosystem,” he said.

The Chainalysis report also highlights the UAE being famous historically for attracting top financiers, entrepreneurs, and tech companies to set up shop locally. Dubai launched its first blockchain strategy in 2016 and then later established its own Virtual Asset Regulatory Authority (VARA) in 2022. The city also the venue of choice for major events like Blockchain Life 2024, World Blockchain Summit, Future Blockchain Summit, Crypto Expo Dubai, and Dubai FinTech Summit, among others.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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