Binance CEO Richard Teng has expressed approval of Standard Chartered’s entry into the cryptocurrency sector following reports that the banking giant is preparing to launch a spot trading desk for Bitcoin and Ethereum. This move positions the bank among the first major traditional financial institutions to offer direct trading services for these leading digital assets, potentially challenging Binance’s dominant position in the market.

Binance, which holds the largest crypto exchange trading volume globally, has encountered various regulatory hurdles over recent years. According to data from Kaiko, more than 53% of Bitcoin's total trading volume on centralized exchanges occurs on the Binance platform.

Sources familiar with the matter disclosed to Bloomberg that the new trading desk will operate within the bank’s foreign exchange trading unit based in London. A spokesperson for Standard Chartered reportedly stated:

“We have been collaborating closely with regulators to meet the demand from our institutional clients for trading Bitcoin and Ethereum. This aligns with our strategy to support clients across the broader digital asset ecosystem, encompassing access, custody, tokenization, and interoperability.”

At the time of press, the bank had not responded to CryptoSlate’s request for additional comments.

Standard Chartered’s initiative underscores the increasing institutional interest in cryptocurrency adoption and demonstrates the bank’s commitment to this emerging sector. Currently, the bank holds stakes in two crypto ventures, Zodia Custody and Zodiac Markets, which provide services including crypto custody and over-the-counter trading of digital assets.

The crypto community has largely welcomed the news as a significant move toward broader institutional adoption of cryptocurrencies. Market analysts note that such developments are expected as traditional financial institutions like banks adapt to the evolving economic landscape, especially in light of the approval of various crypto-related ETFs in major markets such as the US and Hong Kong.

However, banks must navigate a stringent regulatory environment concerning their exposure to digital assets. For instance, the Basel Committee on Banking Supervision advises banks to assign a risk weight of 1,250% to unhedged crypto exposures. Additionally, in the US, regulations such as the SEC’s Special Accounting Bulletin (SAB) 121 impose further constraints on banks engaging with digital assets.