Binance CEO welcomes Standard Chartered move to launch Bitcoin trading desk

Binance CEO Richard Teng has welcomed Standard Chartered to the crypto industry after reports indicated the banking giant was preparing to launch a spot trading desk for Bitcoin and Ethereum.

The move would make the bank one of the first major traditional financial institutions to offer direct trading services for top digital assets and could create competition for Binance’s dominance in the sector.

Binance is the largest crypto exchange by trading volume and has faced several regulatory challenges in recent years. According to Kaiko factsMore than 53% of BTC’s total trading volume on centralized exchanges takes place on the platform.

Pro-crypto movements

Sources familiar with the matter told Bloomberg that the new desk will be part of the bank’s currency trading unit and operate from London. A bank spokesperson reportedly said:

“We have worked closely with our regulators to support our institutional clients’ demand to trade Bitcoin and Ethereum, in line with our strategy to support clients across the broader digital asset ecosystem, from access and custody to tokenization and interoperability. ”

The bank has not yet responded Crypto Slates request for additional comment at time of going to press.

Standard Chartered’s initiative reflects the growing demand for institutional crypto adoption and highlights the bank’s commitment to the emerging industry. Currently, the bank has stakes in two crypto companies, Zodia Custody and Zodiac Markets, which provide services such as crypto custody and over-the-counter trading of digital assets.

Institutional importance

The crypto community has embraced news of the bank’s move, viewing it as an important step toward the continued institutional adoption of crypto.

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Market experts explained that this move was not surprising as traditional financial institutions such as banks need to adapt to the current economic landscape, given the adoption of several crypto-related ETFs in major markets such as the US and Hong Kong.

Nevertheless, banks would have to deal with a strict regulatory environment regarding their exposure to digital assets.

The Basel Committee on Banking Supervision advises banks to assign a 1,250% risk weight to unhedged crypto exposures. In the US, regulations such as the SEC’s controversial Special Accounting Bulletin (SAB) 121 place additional restrictions on banks dealing with digital assets.

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