Following its September launch of digital asset custody services in the UAE, Standard Chartered has established a new digital asset custody subsidiary in Luxembourg. The move aligns with the bank’s strategy to support clients under the European Union’s Markets in Crypto-Assets (MiCA) regulations while broadening its scope to include a variety of digital assets.
Luxembourg, a key European hub for tokenized bonds and funds, has become a strategic location for this expansion. The subsidiary aims to facilitate the custody of digital assets while adhering to regulatory requirements, thereby enhancing security and reliability for institutional clients.
Leadership and Vision
Laurent Marochini, formerly Head of Innovation at Societe Generale Securities Services, has been appointed as the CEO of Standard Chartered’s new subsidiary. Based in Luxembourg, Marochini brings extensive expertise, including his role as co-chair of the blockchain and cryptocurrency working group at the Association of the Luxembourg Fund Industry (ALFI).
Margaret Harwood-Jones, the bank’s Global Head of Financing & Securities Services, expressed enthusiasm about offering digital asset custody services in the EU region. She emphasized that the service provides robust security through regulatory compliance and represents a transformative step in traditional finance.
Expanding Institutional Access
The Luxembourg subsidiary aims to pave the way for institutional clients to access the growing digital asset ecosystem securely. By leveraging its regulated framework, Standard Chartered intends to position itself as a key player in the custody of digital assets, meeting the needs of institutions seeking to diversify into this emerging market.
In the UAE, one of the initial clients for its custody services was OKX, a prominent cryptocurrency exchange. Through this partnership, Standard Chartered acted as a custodian for OKX’s institutional clients, demonstrating its capacity to serve major players in the digital asset sector.
Competing with Zodia Custody
Standard Chartered’s expansion into digital asset custody places it in competition with its indirect subsidiary, Zodia Custody. Zodia was established in 2020 by Standard Chartered in collaboration with Northern Trust, which holds a minority stake. The subsidiary obtained regulatory approval in 2021 and has since expanded its investor base to include Japan’s SBI, National Australia Bank (NAB), and Emirates NBD.
Despite the broader backing, Standard Chartered’s SC Ventures retains controlling interest in Zodia. SC Ventures’ strategy focuses on ensuring that its subsidiaries operate independently from the core bank, fostering innovation while maintaining operational autonomy.
A Step Forward in Digital Finance
The launch of the Luxembourg subsidiary reflects Standard Chartered’s broader commitment to digital finance innovation. By offering secure and regulated digital asset custody services, the bank is enabling institutional clients to explore the digital asset ecosystem confidently. This move also signals a broader trend among traditional financial institutions integrating blockchain and cryptocurrency into their service offerings, ultimately transforming the financial landscape.