Standard Chartered Bank is set to launch a spot trading desk for Bitcoin and Ethereum, according to a sources familiar with the matter. This move marks a significant milestone in the bank's expansion into the cryptocurrency market, catering to the growing institutional demand for digital assets.

The London-based bank's spot trading desk will operate under its FX division, leveraging the bank's expertise in foreign exchange trading. This development aligns with Standard Chartered's existing investments in crypto firms, Zodia Custody and Zodia Markets, which offer crypto custody and trading services for institutions.

The launch of the spot trading desk coincides with the rollout of spot Bitcoin exchange-traded funds (ETFs) in major markets, including Asia and North America. This move is expected to pave the way for other major banks to offer spot crypto trading services to retail and institutional investors.

Standard Chartered has been bullish on Bitcoin and Ethereum prices, predicting that the launch of spot Bitcoin ETFs will propel Bitcoin's price to $200,000 by 2024. The bank also expects Ethereum to surpass $8,000 by the end of 2024 following the approval of spot Ether ETF.

Beyond cryptocurrency trading, Standard Chartered has been exploring blockchain technology to enhance financial services. The bank launched a blockchain unit called Libeara in November 2023, which partnered with FundBridge Capital to create a tokenized Singapore-dollar government bond fund. This move demonstrates the bank's commitment to leveraging blockchain technology for asset tokenization and institutional investment.

Standard Chartered's foray into spot crypto trading and blockchain technology underscores the bank's dedication to the digital asset space. As institutional adoption of cryptocurrencies continues to grow, the bank is well-positioned to capitalize on this trend, offering a range of services to its clients.