Standard Chartered launches Luxembourg entity for custody of cryptocurrencies in the EU

Standard Chartered has announced the launch of a new entity in Luxembourg which will serve as a regulatory entry point for the provision of cryptocurrency and digital asset custody services to clients in the European Union (EU).

The multinational bank’s first crypto services in the region will focus exclusively on Bitcoin (BTC) and Ethereum (ETH), with plans to expand to additional assets later in 2025.

Luxembourg launch

According to the official press release, the Luxembourg entity leverages the country’s balanced regulatory and financial environment to meet growing demand from EU customers. At the same time, Laurent Marochini was appointed CEO of the new entity. Interestingly, Marochini was the former head of innovation at Société Générale.

Commenting on the new entity, Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, said:

“We are really excited to be able to offer our digital asset custody services in the EU region, allowing us to support our clients with a product that changes the landscape of traditional finance, while offering the level security inherent in being a properly regulated entity. We are incredibly proud to be paving the way for our institutional clients to access the digital asset ecosystem.

The expansion into Luxembourg follows Standard Chartered’s decision to launch cryptocurrency custody services in the United Arab Emirates (UAE). The bank revealed that its digital asset custody offerings will initially focus on Bitcoin (BTC) and Ethereum (ETH), in collaboration with Brevan Howard Digital, the crypto arm of hedge fund Brevan Howard.

The latest development follows the implementation of the Markets in Crypto Assets (MiCA) regulations and is part of the banking giant’s global strategy to expand its digital asset offering.

MiCA Trading Rules

Under the MiCA Regulation, crypto exchanges classified as crypto-asset service providers (CASPs) must adhere to a strict framework to operate within the EU. These requirements include obtaining authorization from national regulatory authorities, meeting financial stability criteria, as well as ensuring operational transparency.

Exchanges must also implement strict consumer protection measures, such as clear terms of service, fee information, and robust security systems to protect user funds and data. Additionally, they are required to maintain transparency by reporting trading volumes, disclosing conflicts of interest, and maintaining detailed records of transactions.

Additionally, MiCA’s anti-money laundering (AML) provisions require exchanges to implement Know Your Customer (KYC) processes, monitor transactions for suspicious activity, and retain data to support investigations. Meeting these standards often requires advanced compliance technologies and significant investments in resources.

Small exchanges, in particular, face challenges in meeting financial stability requirements and implementing sophisticated compliance infrastructure.