Custody News | Standard Chartered Bank is finally launching custody pilot services this year

Since 2018, Standard Chartered's venture capital and innovation department has been developing cryptocurrency custody products for institutional markets. The head of the department recently revealed to blockchain media CoinDesk that the pilot of this solution is expected to launch as early as the end of this year.

Standard Chartered Bank Ventures into Cryptocurrency Custody Business

SC Ventures, headquartered in Singapore, is the risk investment and innovation arm of the UK's Standard Chartered Bank, aimed at helping the bank group to create new businesses and cash flow revenue. Alex Manson, Head of SC Ventures, confirmed to CoinDesk yesterday that the company is building the "safest cryptocurrency custody solution in the market." While specific details are still scarce, Manson stated that the custody solution will be open to global users, with as many as 20 institutions expressing strong interest in the cryptocurrency custody solution. On the other hand, in addition to assets like Bitcoin, SC Ventures is also considering incorporating security tokens into the solution.

In fact, Standard Chartered Bank has been continuously hinting at its interest in cryptocurrency custody solutions. As early as 2018, Margaret Harwood-Jones, Global Head of Securities Services at Standard Chartered Bank, revealed this to "Global Custodian." Harwood-Jones stated in the interview:

"The market believes that institutional investors are still adopting a wait-and-see attitude because they are not sure if this belongs to an asset class and if there are trustworthy service providers in this field. Therefore, reputable, reliable, and trustworthy banking institutions play a significant role in bringing it into more mainstream status as an asset class."

Removing Barriers for Institutional Investors

Alex Manson, Head of SC Ventures, believes that the lack of appropriate custody products is the biggest obstacle for institutions to adopt cryptocurrencies. Manson pointed out that the current custody products in the market are not sufficient to provide the necessary security for clients storing millions of dollars' worth of digital assets. Now, with the Standard Chartered Bank's backing, SC Ventures is providing infrastructure for institutional investors, which will boost their willingness to enter the cryptocurrency market.

Manson stated that the first pilot of the custody solution is set to launch later this year.