Standard Chartered Secures Crypto Custody License in Luxembourg under MiCA Framework

Standard Chartered has obtained a license to provide crypto custody services in Luxembourg, marking a significant milestone in its expansion within the European Union. The approval, announced on January 9, falls under the Markets in Crypto-Assets (MiCA) framework, a unified regulatory approach for crypto businesses across the EU.

The MiCA framework requires companies to secure a Crypto Asset Service Provider (CASP) license from an EU member state to operate across the bloc. Effective as of December 2024, this regulation establishes clear compliance standards, enabling streamlined operations across the region.

By securing the license, Standard Chartered aims to capitalize on Luxembourg’s stable financial ecosystem and transparent regulatory environment to enhance its presence in the EU market. This initiative builds on its earlier introduction of digital asset custody services in the UAE, reinforcing the bank’s commitment to the growing crypto industry.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, highlighted the importance of this development in delivering innovative financial solutions that prioritize security and regulatory compliance. The bank’s Luxembourg operations will be led by Laurent Marochini, a seasoned executive with prior experience as Head of Innovation at Société Générale.

Strengthening Crypto Initiatives

Standard Chartered’s move in Luxembourg is part of its broader strategy to expand its role in the digital asset ecosystem. In mid-2024, reports surfaced about the bank’s preparations to launch a spot trading desk for Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization.

Additionally, its affiliate Zodia Markets has been making significant strides in the crypto sector. The firm played a pivotal role in facilitating the UK’s first pension fund allocation into Bitcoin through the Cartwright Pension Trusts. Zodia Markets also obtained a Financial Services Permission (FSP) from Abu Dhabi’s Financial Services Regulatory Authority (FSRA), enabling it to provide comprehensive digital asset solutions with faster local settlements by integrating domestic banking systems.

This latest development underscores Standard Chartered’s commitment to embracing digital assets and positioning itself as a leader in the evolving financial landscape.