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Standard Chartered, Circle launch bank-led USDC minting

Created at 2 Jul · 11:45 AM1 source↑ Market-relevant
IN SHORT

Standard Chartered and Circle have launched a new service allowing institutional clients to mint and redeem USDC stablecoins through Standard Chartered's banking platform. The initiative, starting in Dubai's DIFC, aims to integrate stablecoin access within traditional banking risk and compliance frameworks.

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Key Numbers

1Global Systemically Important Bank (G-SIB) offering USDC services

Who's Involved

Standard Chartered
Global Systemically Important Bank (G-SIB) offering USDC minting and redemption
Circle
USDC issuer partnering with Standard Chartered
Roberto Hoornweg
CEO of corporate and investment banking at Standard Chartered
Jeremy Allaire
CEO of Circle

↳ Why This Matters

This collaboration integrates stablecoin services directly into traditional banking infrastructure, potentially increasing institutional adoption of digital assets by providing familiar risk and compliance frameworks.

Key facts

  • Standard Chartered and Circle have launched a service for institutional clients to mint and redeem USDC.
  • The service integrates stablecoin access into traditional banking risk, compliance, and governance frameworks.
  • Clients will mint and redeem USDC directly through Standard Chartered's platform.
  • The service is initially rolling out through Standard Chartered's operations in the Dubai International Financial Centre (DIFC).
  • Standard Chartered intends to expand the capability to other markets, depending on regulatory approval and client demand.

Standard Chartered and Circle have partnered to enable institutional clients to mint and redeem the USDC stablecoin directly through Standard Chartered's banking platform. This initiative aims to bring stablecoin access under traditional banking risk, compliance, and governance frameworks, allowing clients to manage digital assets alongside traditional banking services.

The service will initially be available through Standard Chartered's operations in the Dubai International Financial Centre (DIFC), with plans for global expansion contingent on regulatory approvals and client demand. This move signifies a growing integration of stablecoin infrastructure into traditional financial systems, as companies compete for control over digital asset distribution and access.

Roberto Hoornweg, CEO of corporate and investment banking at Standard Chartered, stated that the goal is to introduce traditional banking standards to crypto markets amid increasing demand for regulated infrastructure. This will facilitate broader institutional participation in digital asset markets through established controls and regulatory oversight.

The announcement follows comments from Circle CEO Jeremy Allaire regarding competition in the stablecoin market and the network effects of USDC.

Frequently asked questions

USDC is a stablecoin, a type of cryptocurrency designed to maintain a stable value relative to a specific asset, in this case, the U.S. dollar.

A Global Systemically Important Bank (G-SIB) is a bank whose failure could have severe repercussions on the global financial system, indicating a high level of integration and influence in traditional finance.

The DIFC is a financial free zone in Dubai, United Arab Emirates, established to grow the financial services sector in the region and offering a robust regulatory framework for financial institutions.

What Happens Next

01Standard Chartered plans to expand the USDC minting and redemption capability to other markets.
02Expansion will depend on regulatory approval and client demand.

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Cadence

How It Developed

Standard Chartered and Circle launched a system for institutional clients to mint and redeem USDC.
The service integrates stablecoin access into traditional banking risk, compliance, and governance frameworks.
Clients can mint and redeem USDC directly through Standard Chartered's platform.
The initial rollout is via Standard Chartered's operations in the Dubai International Financial Centre (DIFC).
Standard Chartered plans to expand the service globally, pending regulatory approval and client demand.
Circle CEO Jeremy Allaire commented on competition in the stablecoin market.

Sources

T1
Standard Chartered, Circle bring USDC minting onto banking railsStandard Chartered and Circle launch bank-led USDC minting and redemption for institutions, starting in Dubai’s DIFC with planned global expansion.Cointelegraph

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