Standard Chartered Bank, with assets of about $447 billion, is launching crypto-asset custody services for institutional clients in Singapore.
Why is “custody” so important?
Of course, institutions can buy crypto, but within a strict compliance framework, many institutions are not well suited to manage private keys themselves.
So, who will securely hold and manage these assets on behalf of institutions becomes a critical part of the process.
Therefore, when a bank enters Crypto, it may not necessarily be trying to compete with exchanges for the business of “selling coins.” More importantly, it is aiming to secure the position of “holding coins for institutions.”
And it’s also worth noting that Standard Chartered is pushing this business in Singapore. A traditional financial institution is trying to integrate Crypto into its familiar custody and financial infrastructure systems.
What’s truly worth paying attention to isn’t yet another bank saying it’s optimistic about Crypto.
It’s that banks are starting to build these foundational infrastructures themselves—trading, custody, clearing, and settlement.
Retail enthusiasm may fluctuate, but once the infrastructure is in place, the threshold for institutional capital to enter Crypto will drop even further.
Why is “custody” so important?
Of course, institutions can buy crypto, but within a strict compliance framework, many institutions are not well suited to manage private keys themselves.
So, who will securely hold and manage these assets on behalf of institutions becomes a critical part of the process.
Therefore, when a bank enters Crypto, it may not necessarily be trying to compete with exchanges for the business of “selling coins.” More importantly, it is aiming to secure the position of “holding coins for institutions.”
And it’s also worth noting that Standard Chartered is pushing this business in Singapore. A traditional financial institution is trying to integrate Crypto into its familiar custody and financial infrastructure systems.
What’s truly worth paying attention to isn’t yet another bank saying it’s optimistic about Crypto.
It’s that banks are starting to build these foundational infrastructures themselves—trading, custody, clearing, and settlement.
Retail enthusiasm may fluctuate, but once the infrastructure is in place, the threshold for institutional capital to enter Crypto will drop even further.