Standard Chartered has set up a new entity in Luxembourg to serve as its regulatory hub for offering digital asset custody services across the European Union. The move positions the bank to capitalise on growing institutional demand in the region while aligning with the EU’s evolving regulatory framework under the Markets in Crypto Assets (MiCA) Regulation.

The Luxembourg entity will focus on safeguarding cryptocurrencies and tokenised assets for institutional clients. This marks, according to a press release, a step in Standard Chartered’s global digital asset strategy, following the recent launch of similar services in the UAE. The bank has chosen Luxembourg for its favorable regulatory and financial environment, making it an ideal base for digital asset operations in Europe.

Zodia Custody

The new unit will operate under Zodia Custody, Standard Chartered’s digital asset custody subsidiary. Zodia Custody, a joint venture with Northern Trust, has been expanding its services globally, providing custody solutions for cryptocurrencies and tokenised assets that meet institutional-grade standards.

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Laurent Marochini has been appointed CEO of the Luxembourg entity. Marochini was previously the head of Innovation at Société Générale.

MiCA

The Luxembourg launch also underscores the bank’s readiness to meet the stringent requirements of MiCA, which aims to harmonise crypto regulations across the EU. Zodia Custody has already demonstrated compliance with the UK’s Financial Conduct Authority (FCA) rules, providing it with a strong foundation to adapt to EU regulations.