Standard Chartered is on the verge of launching its own spot trading desk for bitcoin and ether, signaling a significant step into the cryptocurrency market, according to a report by Bloomberg.

Sources familiar with the matter revealed that the British multinational bank plans to integrate the new trading desk into its Foreign Exchange (FX) unit, with operations based out of London. This development aligns with the bank's broader strategy to meet the growing demand from institutional clients for digital assets.

In an emailed statement reported by Bloomberg, Standard Chartered stated, "We have been working closely with our regulators to support demand from our institutional clients to trade bitcoin and Ethereum. This initiative is part of our strategy to support clients across the wider digital asset ecosystem, from access and custody to tokenization and interoperability."

This move positions Standard Chartered among a select group of large financial institutions expanding their footprint in the cryptocurrency sector as institutional adoption gains momentum. The bank's investment in digital asset firms Zodia Custody and Zodia Markets underscores its commitment to the sector. These firms offer services ranging from crypto custody to over-the-counter (OTC) trading, providing a robust infrastructure for institutional clients.

In addition to its trading desk plans, Standard Chartered has been proactive in leveraging blockchain technology. Last November, the bank launched Libeara, a blockchain unit designed to assist institutions in tokenizing real-world assets. A notable project under Libeara includes the tokenization of a government bond fund denominated in Singaporean dollars.

Meanwhile, the cryptocurrency market has seen notable fluctuations. As of 5:58 a.m. ET, Bitcoin's price had dropped by over 2%, trading at $64,203, according to The Block’s price page. The GMCI 30 index, which tracks the top 30 cryptocurrencies, also declined by 1.97% to 129.86 in the same period.

Standard Chartered's foray into spot crypto trading is a clear indicator of the growing institutional interest in digital assets and the ongoing evolution of the financial landscape. As the bank prepares to launch this new service, it is poised to play a pivotal role in the mainstream adoption of cryptocurrencies.