Standard Chartered has been appointed as the new digital asset custodian for 21Shares, a major step in enhancing crypto ETP infrastructure, as announced in Luxembourg. This partnership underscores growing institutional demand for regulated, secure custody solutions, enhancing trust in digital assets like Bitcoin and Ethereum among investors.
Standard Chartered to Enhance Crypto ETP Custody
The collaboration between Standard Chartered and 21Shares represents a noteworthy shift in digital asset custody. This move aims to enhance the custody infrastructure for crypto ETPs, addressing the institutional demand for secure investment solutions.
Standard Chartered, a global banking leader, will provide digital asset custody services for 21Shares, a major issuer of crypto ETPs. Margaret Harwood-Jones, Global Head of Financing and Securities Services, Standard Chartered, stated, "We are excited to offer our digital asset custody services to ETP providers and other institutions, enabling them to meet the highest standards of safety and compliance. Working with 21Shares as their digital asset custodian allows us to extend our expertise into the fast-evolving digital asset ecosystem and support digital asset-linked products, providing institutional investors with the assurance they require."
Strategic Significance Boosts Institutional Trust
Market players have noted the strategic significance of this partnership. By collaborating, Standard Chartered and 21Shares aim to meet institutional investors' requirements, assuring custody solutions that align with regulatory standards.
Enhanced security and compliance are expected as outcomes, strengthening market trust. Historical data suggest increased institutional participation in crypto markets following major custodial partnerships. Investing in such infrastructure may lead to broader crypto adoption.
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Experts Predict Wider Adoption from Crypto Custody Moves
This event is reminiscent of past collaborations, such as BNY Mellon's involvement with crypto ETPs, which paved the way for increased institutional interest. Standard Chartered's involvement seems poised to replicate such impacts.
Experts anticipate that this move could lead to greater mainstream acceptance of crypto assets like Bitcoin and Ethereum. Institutional investors are likely to appreciate the enhanced security, supporting broader market involvement and adherence to regulatory frameworks.