Retail Banking Institute | Stanchart quietly takes lead in stablecoins

Stanchart quietly takes lead in stablecoins

Standard Chartered is pushing deeper into stablecoin territory as it builds a network of stablecoin ventures across financial capitals in the east. The bank, which has previously partnered with stablecoin Paxos announced this week a joint venture to issue a Hong Kong dollar backed stablecoin. Today it's by backing StraitsX, the Singaporean stablecoin operator, which is registered as a payment institution with the city state's financial regulator, the Monetary Authority of Singapore. "We look forward to working closely with StraitsX and the growing ecosystem to enhance essential payment rails that make digital financial services more accessible and efficient," said Luke Boland, head of fintech, Asia at Standard Chartered Bank. "Under the agreement, Standard Chartered will provide cash management and custody services for the reserve assets backing StraitsX's stablecoins, XUSD and XSGD, facilitating seamless and secure access to XUSD and XSGD for businesses and individuals," reports Finextra. Standard Chartered has been quietly building a position in digital assets, establishing a digital assets business in Luxembourg last month and a similar business in the UAE last year. "The launch of our digital asset custody offering represents a pivotal moment not just for Standard Chartered, but for the financial services industry," said Bill Winters of the UAE business. "We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance. With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business. Our robust infrastructure, coupled with our expertise in the field allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem."