Stanchart rolls out crypto trading for institutional investors

Written by: Jinia Shawdagor
December 9, 2020
  • Per the sources, the platform has the support of several mainstream firms, including METACO.
  • Reportedly, the platform will feature an ERC-20-based settlement token that is similar to Tether.
  • Standard Chartered’s investment arm, SC Ventures, has also launched a crypto custody project.

London-headquartered Standard Chartered bank has brought together a group of crypto exchanges to launch a crypto trading platform for institutional investors. Two sources familiar with the bank’s plans unveiled this news on December 8, noting that the crypto trading platform comprises five of the largest over-the-counter (OTC) traders and four leading exchanges.

Reportedly, the firms involved in this project include, but are not limited to LMAX and ErisX. METACO, a Switzerland-based custody provider that the bank has invested in, will also support this initiative. Apart from the above firms, Cobalt, a UK-based trading technology provider, which has Standard Chartered as an investor will also be part of the bank’s crypto project.

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According to the source,

“Standard Chartered plus five of the biggest traders in digital assets and four exchanges are about to get this new model started. I think the first test trade will be next month and I’d say it’ll end up involving the 10 biggest exchanges in digital.”

Developing a coin similar to Tether (USDT)

Trying to paint a picture of how the platform would be, the source claimed that it would be an institution-centered equivalent of Silvergate Bank’s Exchange Network (SEN). Per the source, the platform will feature an ERC-20-based settlement coin, adding that a lot of people had suggested that the platform run on Hyperledger, Corda. However, the bank decided to go with a network that the native crypto community is comfortable with.

The source went on to note that,

“We are building our own token of fiat collateral and hoping that will become the equivalent of Tether, except that the tokenized collateral or money will be held in the trading bank account of a proper bank, like a Standard Chartered, a JPMorgan, a Deutsche Bank.”

Stanchart’s investment arm launches a crypto custody project

This news comes after news surfaced, noting that SC Ventures, Standard Chartered’s investment arm, was working on an institutional crypto custody project. On Monday, the bank’s CEO, Bill Winters teased that an announcement was on the way. True to his word, SC Ventures indeed unveiled that it had joined hands with Northern Trust, a leading provider of asset financing, to launch an institutional-grade crypto custody platform earlier today.

Reportedly, the platform is dubbed Zodia Custody and is set to start operations in London in the coming year after it meets all applicable regulatory filings and customary closing conditions.

Commenting on this feat, SC Ventures’ Alex Mason said that Zodia’s launch shows the firm’s commitment to rewiring the DNA in banking. He added that the project draws on Standard Chartered’s heritage of providing custody services to institutional clients for more than 160 years. Mason concluded that Zodia seeks to raise industry standards for cryptocurrencies safely, sustainably, and responsibly.