Cryptocurrencies have gained a lot of traction over the last few years and are being utilized by several banks and financial institutions to serve customers better. Major names like Goldman Sachs and J.P Morgan, have are already on board with their respective projects, the latest to publicly embrace virtual currencies is British banking giant Standard Chartered.
According to a report from media outlet Coindesk, the banking giant’s Singapore-based venture arm SC Ventures is developing a crypto custody solution for institutional-grade clients.
With almost 20 institutions already expressing their interest in the bank’s crypto product, the solution might be deployed soon. The product will be U.K based, but open to clients from all over the globe.
The report added that the first pilot would for the project support Bitcoin and security tokens, and could be deployed as early as this year.
Alex Mason, head of SC ventures, confirmed this news, noting that the institutional adoption of cryptocurrencies has been a struggle due to the lack of trustworthy custody offerings.
Since cryptocurrencies are relatively new tech, the Standard Chartered wanted to introduce an institutional-grade storage solution to encourage adoption.
Mason highlighted the flaws that exist in the current custody offerings, claiming that these providers don’t have adequate security to store millions of dollars in digital assets. Some even fail to separate the custody business from other ventures, often leading to problems.
Boosting crypto adoption
Per Mason, SC Ventures believe that launching its crypto custody solution would be an opportunity to kick-start the highly anticipated institutional adoption of cryptocurrencies.
“If digital assets more broadly are here to stay as an asset class, then you will need the infrastructure to keep them safe,” Manson said.
A week before, SC ventures took part in crypto custodian and infrastructure provider METACO’s $17 million Series A funding round, for further expansion of METACO’s product to the U.S., Western Europe, and Southeast Asia
Mason had then said:
“We believe that digital assets are here to stay as an asset class… We are developing a venture to meet the demands of institutional investors for an end-to-end institutional-grade custodian of digital assets, which meets regulatory standards.”
METACO will be providing tech infrastructure to SC Ventures for the custodial solution. However, this isn’t the first time the banking giant has expressed its interest in cryptocurrencies. Back in 2018, the Standard Chartered bank’s global head Margaret Harwood-Jones told trade publication Global Custodian that it was something the group was exploring back in November 2018.