Standard Chartered Expands into EU with Luxembourg-Based Crypto Custody Services

Standard Chartered an international banking giant operating in Asia, Africa, the Middle East  has established a new subsidiary in Luxembourg to such digital assets as cryptocurrencies and tokens within the EU. The same provides towards the EU’s Markets in Crypto Assets (MiCA) Regulation, currently an integral structure for the supervision and governance of crypto operations across the union.

Strategic Importance of Luxembourg in Standard Chartered’s Expansion

Announcing the development on Friday, the bank emphasized the strategic importance of its latest expansion:

The opening of the business in Luxembourg is part of Standard Chartered’s global digital asset strategy, enabling broadening of its digital asset portfolio.

This comes after the bank launched digital asset custody solutions in the United Arab Emirates (UAE) this year. Standard Chartered stated that the regulatory and financial condition of Luxembourg was perfect for such kind of expansion to meet EU demand for safe and legal digital asset services.

Bank will use the Luxembourg entity as a starting point of its regulation on digital asset services in EU as well as broaden its efforts to enter the new sector to change the industry’s opinion about the bank as a limited and cautious player. As a corporate bank, wealth management, and having strength in trade finance, Standard Chartered plans to meet the growing interest in regulated and secure digital assets.

The Role of Regulation in Ensuring Secure Digital Asset Services

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Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, highlighted the significance of the launch:

We are really excited to be able to offer our digital asset custody services to the EU region, which would enable us to assist our clients with a product that is revolutionalising the traditional financial industry while also offering the security that comes with being a properly regulated organisation.

The CEO of this Luxembourg-based company is Laurent Marochini, who was previously Société Générale’s Head of Innovation. Marochini expressed his commitment to the role: “I am delighted to be part of Standard Chartered Luxembourg and take on a new role as the CEO of the bank. Here, I want to state that I am absolutely dedicated to producing value for the clients, employees, and shareholders.”

Being a country that greatly values the stability of the regulations in Luxembourg, this decision is expected to advance the company’s presence in the increasingly developing digital asset space as well as to contribute to its efforts toward building the new face of the finance industry.

Conclusion

Standard Chartered enlarges in Luxembourg, showing its proactivity in growing demand for secure and regulated digital asset services. Leveraging Luxembourg’s stable legal framework regarding the Fintech industry and the appointment of a new CEO with vast experience in the digital asset space, the bank is ready to enhance its presence in the region for the benefit of clients in the continuously growing digital asset environment of the EU.

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FAQs

1. Why did Standard Chartered choose Luxembourg?
   Luxembourg offers a stable regulatory environment and aligns with the EU’s MiCA Regulation, making it ideal for secure digital asset services.
2. What is the goal of this expansion?
   To broaden Standard Chartered’s digital asset portfolio and meet EU demand for regulated solutions.
3. Who leads the Luxembourg entity?
   Laurent Marochini, former Head of Innovation at Société Générale, is the CEO.
4. How does this fit into the bank’s strategy?
   It complements global initiatives like the UAE launch and supports innovation in digital finance.