Standard Chartered has obtained regulatory approval in Luxembourg to provide digital asset custody services, establishing a foothold in the European Union as the region implements its Markets in Crypto Assets (MiCA) regulation.

Standard Chartered Wins Luxembourg Digital Asset License in EU Push

The international banking group has appointed Laurent Marochini, former Head of Innovation at Société Générale, as CEO of the Luxembourg operation. This move marks another expansion of Standard Chartered's digital asset strategy, following its recent launch of similar services in the United Arab Emirates.

“We are really excited to be able to offer our digital asset custody services to the EU region,” said Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered. “This enables us to support our clients with a product that is changing the landscape of traditional finance, while maintaining the security standards expected from a regulated entity.”

The Luxembourg entity will serve as Standard Chartered's regulatory entry point to the EU market, capitalizing on the country's established financial infrastructure and balanced regulatory environment. This decision comes as institutional demand for digital asset services continues to grow across the European Union.

The Luxembourg operation is part of Standard Chartered's digital asset strategy and follows similar developments by other financial institutions in the blockchain and digital asset sector.

Marochini joins the bank from his previous position as Head of Innovation at Société Générale. “It is an honor to join the leading international bank, Standard Chartered Luxembourg as CEO,” he said. “I am fully committed to delivering excellence for our clients, team and stakeholders.”

The bank has already acquired a major partner, announcing that OKX exchange decided to use Standard Chartered’s custodian services for institutional crypto operations.

Bank’s Crypto Arm Snaps Up OTC Trading Powerhouse

Standard Chartered also runs its crypto arm dubbed Zodia Markets, which recently announced plans to acquire Elwood Capital Management Ltd (ECML), the digital asset over-the-counter (OTC) trading division of Elwood Technologies. The deal, concluded in August 2024, aims to strengthen Zodia Markets’ regulated presence and improve its services for institutional clients globally.

This acquisition aligns with Elwood Technologies’ strategy to concentrate on its core software-as-a-service (SaaS) offerings, including its execution management system (EMS) and portfolio management system (PMS) tailored for institutional investors. The move reflects Elwood's intention to focus exclusively on digital asset execution and portfolio management software while divesting its OTC trading business.

For Zodia Markets, the acquisition represents a significant step in its growth strategy, granting it licenses for virtual asset service provider services and investment businesses in Jersey. These licenses will enable Zodia Markets to expand its regulated offerings, particularly in OTC settlement services, further positioning the company as a leading institutional crypto service provider.