Standard Chartered Launches Bitcoin, Ethereum Trading Amid U.S. Stablecoin Focus

Standard Chartered Expands Digital Asset Trading Amid U.S. Stablecoin Regulatory Focus

Standard Chartered has broadened its digital asset offerings by introducing spot trading for Bitcoin (BTC) and Ethereum (ETH) on its institutional cryptocurrency platform. This strategic expansion coincides with a growing regulatory and investor emphasis in the United States on stablecoins, a sector anticipated to experience substantial growth as legislative clarity approaches.

Engagement with Policymakers and Market Outlook

Between July 7 and July 11, Geoffrey Kendrick, Standard Chartered’s Head of Digital Assets Research, conducted a series of high-level meetings across Washington, New York, and Boston. These discussions involved crypto-native firms, Bitcoin miners, investment funds, and policymakers. Despite Bitcoin achieving new record highs during this period, nearly 90% of the conversations centered on stablecoins, underscoring the shifting focus within the digital asset landscape.

The surge in interest aligns with the U.S. Congress’s consideration of the GENIUS Act, legislation aimed at establishing clear regulatory frameworks for fiat-backed digital assets. Kendrick anticipates that this bill could be enacted imminently, potentially catalyzing rapid expansion in the U.S. stablecoin market. Market projections now estimate the stablecoin sector could grow to $750 billion by the end of 2026, a significant increase from approximately $250 billion as of mid-July.

Regulatory clarity is expected to facilitate broader adoption beyond major financial institutions, extending to regional banks and local governments exploring tokenized cash instruments. However, Standard Chartered’s move into crypto trading is not without challenges. The inherent volatility of cryptocurrencies may attract intensified regulatory scrutiny, and investor responses could vary as the bank balances its new trading services with a strategic emphasis on stablecoins.

Industry Implications and Legislative Developments

Competitors in the financial sector may respond by enhancing their own cryptocurrency services or prioritizing stablecoin products, particularly as the U.S. Senate prepares to decide on stablecoin regulation. The outcome of this legislative process is poised to significantly influence institutional engagement with crypto trading. Meanwhile, Ethereum’s economic model continues to face examination due to liquidity imbalances, adding complexity for market participants.

Beyond adoption trends, recent discussions have also explored broader macroeconomic implications. These include potential shifts in the U.S. Treasury yield curve, long-term effects on dollar liquidity, reforms to payment systems, and the risks stablecoins may pose to financial stability in emerging markets. Standard Chartered’s analysis suggests that the stablecoin sector is evolving at a faster pace than previously anticipated.

Kendrick further highlighted the Digital Asset Market Clarity Act, a separate legislative initiative expected to pass by late September or early October. This bill could accelerate the tokenization of real-world assets and promote the integration of decentralized finance (DeFi) infrastructure.

On-chain data corroborates these developments, showing consistent growth in stablecoin balances across a range of wallet types, including centralized exchanges, DeFi platforms, and retail wallets. This trend signals expanding use cases and increasing global demand.

Standard Chartered’s introduction of Bitcoin and Ethereum trading, alongside its concentrated focus on stablecoins, marks a significant shift in institutional cryptocurrency strategy. While Bitcoin continues to serve as a store of value, the evolving industry infrastructure and policy agenda are increasingly centered on stablecoins as the foundation of programmable money, with forthcoming regulatory decisions set to shape the future trajectory of digital asset adoption.