Rene Michau, group head of digital assets, Standard Chartered, thinks the framing of digital assets as moving from crypto-native infrastructures into more regulated models risks oversimplification. He argued that it is not about “moving away” from crypto but about the coexistence and eventual convergence of two operating systems: one being the traditional account-based banking model, where each regulated institution manages its own database and messaging protocols like SWIFT; the other being crypto’s decentralised infrastructure, in which ledgers are shared, transparent and updated through cryptographic mechanisms. Framing the debate: beyond crypto versus banking Michau urged that rather than portraying crypto as something to abandon, it should be seen as a new “operating system for financial services.” He explained that while crypto has faced scandals such as the collapse of FTX, these should be understood in the same way as Enron in the energy sector—serious corporate failures that did not invalidate electricity itself. Similarly, crypto will remain a foundational infrastructure, requiring better governance and integration rather than rejection. This perspective reflects a strategic decision by Standard Chartered. Rather than keeping crypto at arm’s length, the bank chose to engage directly, building competence and risk frameworks to manage it. Michau explained that crypto represents both a challenge and an opportunity: it is what clients are demanding, and it forces the bank to build resilient risk systems that prepare it for a tokenised future. For this reason, the bank invested Zodia Custody in 2018 with Northern Trust, which launched to market in 2022, serving as an institutional-grade solution for safekeeping digital assets. Standard Chartered has also invested in Zodia Markets, an institutional exchange and brokerage platform, as well as having supported Partior, a blockchain-based cross-border payments platform developed in collaboration with DBS and Temasek. Michau further observed that public blockchain ecosystems have scaled faster and shown greater resilience than many permissioned-chain experiments such as R3 Corda or Hyperledger. This scalability, he said, is why public blockchains cannot be ignored. The bank’s goal, therefore, has been to carve out a role as a provider of safe, risk-managed access for institutional clients, while also bringing regulators and communities along on the journey. This, he emphasised, is consistent with Standard Chartered’s historical mission of connecting emerging markets to the global economy—except now, the “emerging market” is a new class of digital infrastructure. Stablecoins, tokenised assets and institutional tipping points Stablecoins emerged as a crucial bridge between crypto-native infrastructure and institutional applications. Without a form of money embedded in blockchain networks, tokenised assets and programmability cannot function effectively. Stablecoins have therefore become a linchpin, moving from niche instruments for crypto traders into broader use cases such as corporate payments, foreign exchange (FX) and treasury management. Michau explained that corporates, unlike banks, are not financially regulated entities. This makes them early adopters of innovations like stablecoins, particularly when such instruments solve problems in cross-border payments or correspondent banking. As corporates adopt stablecoins, banks must follow or risk losing relevance. The tipping point for adoption has already arrived, he argued, with ecosystems embedding stablecoins invisibly. For example, PayPal has launched its own stablecoin, Stripe has enabled stablecoin payments for merchants, and Visa and Mastercard are piloting stablecoin settlement. Merchants using Shopify and other e-commerce platforms can also integrate stablecoin settlement without consumers being aware. These developments, Michau said, show how mainstream adoption is already happening in the background. He contrasted this with tokenised deposits. While promising for intra-bank operations and financial product design, they require communal infrastructure to scale. Michau candidly admitted that clients ask far more about stablecoins than tokenised deposits. Still, both instruments are complementary. Stablecoins excel in portability and programmability, while tokenised deposits optimise internal processes. On tokenised assets, Michau highlighted money market funds as the first asset class to achieve genuine traction. Standard Chartered has been directly involved in this area, supporting Franklin Templeton’s Benji fund and China AMC’s tokenised money market funds. In the United Arab Emirates (UAE), such tokenised funds are already being used as collateral by crypto exchanges, demonstrating their value in real-world financial markets. Tokenisation enables these funds to move 24/7, eliminating redemption delays that limit their use in traditional finance. Michau also pointed to UBS’s issuance of tokenised structured notes and JPMorgan’s tokenised collateral network as additional signs of momentum in the institutionalisation of tokenisation. Regulatory approaches across jurisdictions The regulatory landscape was a recurring theme. Michau compared Singapore, which takes a payments-led approach and restricts retail trading, with Hong Kong, which allows broader retail participation through an asset-focused framework. In Europe, Markets in Crypto-Assets Regulation (MiCA) is creating a unified regime for stablecoins and digital securities. The UAE has taken a progressive approach through Virtual Assets Regulatory Authority (VARA) in Dubai and Abu Dhabi Global Market (ADGM) in Abu Dhabi, licensing both traditional financial institutions and crypto-native firms. In the United States (US), by contrast, regulation remains fragmented, with the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and state-level regulators each staking claims over aspects of the digital asset space. Standard Chartered has embraced this complexity by assuming regulation will eventually align digital assets with existing frameworks. “We just assume there’s going to be regulation, and it will look like the regulation we’ve had previously,” Michau said. This means treating customers fairly, managing risks, holding adequate capital, and ensuring competent bankers operate these businesses. The bank has also engaged proactively. It spent four years working with the United Kingdom (UK)’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) before becoming the first global bank to offer spot crypto trading on its foreign exchange (FX) desk. It has contributed to Bank for International Settlements (BIS) projects such as mBridge, which connects central banks across Hong Kong, Thailand, China, and the UAE for cross-border central bank digital currency (CBDC) settlement. It has worked with the Hong Kong Monetary Authority (HKMA) on its electronic Hong Kong dollar (e-HKD) pilots and the Monetary Authority of Singapore (MAS) on Project Guardian, which explores tokenised deposits and assets. Such initiatives position the bank at the centre of regulatory dialogue while allowing it to learn from practical experiments. Interoperability, scaling and industry collaboration Michau acknowledged that many bank-led consortia have failed to achieve the scale of public blockchains. These initiatives often struggled because they created closed systems, while Ethereum flourished with its open Ethereum Request for Comments (ERC) standards that allowed anyone to build applications. “Ethereum succeeded because it acted like the internet,” Michau noted. Permissioned chains often lacked this openness, limiting adoption. Stablecoins, built on public blockchains, therefore enjoy a natural interoperability advantage. Tokenised deposits, tied to specific banks and closed networks, are less portable. However, tokenised deposits serve different functions and will evolve alongside stablecoins. Industry collaborations are underway to address interoperability: BIS’s unified ledger concept, Project Agora with SWIFT and commercial banks, and efforts by institutions such as JPMorgan’s Kinexys (former Onyx) platform and Fnality’s utility settlement coin all point toward converging infrastructures. Standard Chartered has positioned itself within these networks. It has participated in Project Dunbar (with MAS, Reserve Bank of Australia, Bank Negara Malaysia, and South African Reserve Bank) to test multi-CBDC settlement. It has engaged in Project Guardian (with MAS and industry partners) to explore tokenised assets. It has also partnered with Hong Kong Exchange (HKEX) on tokenised fund distribution and with SBI in Japan on digital asset ventures. These collaborations ensure the bank is not only learning but also shaping the standards of the future. Client adoption, scaling and commercialisation Michau insisted that Standard Chartered’s strategy is client-led, not technology-led. “The number one thing we are trying to do is help our clients access these in ways that are commercially helpful for them,” he said. The bank has prioritised crypto custody, crypto trading, stablecoin payments and tokenised collateral because clients already express demand in these areas. He cited Franklin Templeton, China AMC, and UBS as examples of institutions already tokenising products. Corporates are beginning to demand stablecoin settlement options, while asset managers look for faster and cheaper ways to move collateral. Standard Chartered is responding with its own proprietary services and through Zodia Custody, Zodia Markets, and its partnerships with platforms like Partior. It is also extending services to non-bank financial institutions such as hedge funds, brokers and fintechs, ensuring they have access to institutional-grade digital asset infrastructure. Looking ahead, Michau pointed to predictions that stablecoins could quadruple in market size to $2 trillion within three years. Tokenised assets, he argued, will become significant once 10% to 20% of an asset class operates in tokenised form. Indicators such as exchange traded fund (ETF) approvals, tokenised funds being accepted as collateral, and corporates adopting stablecoins for payments all suggest momentum. Standard Chartered’s role, he said, is to facilitate safe, risk-managed access to these opportunities. Conclusion: a pragmatic bridge to the future Michau’s account positions Standard Chartered as a pragmatic bridge between crypto-native innovation and institutional finance. Its strategy is grounded in risk management, regulatory engagement, and client demand, with crypto seen not as a speculative detour but as a new operating system to integrate responsibly. Its investment in Zodia Custody, Zodia Markets, Partior, collaborations on CBDC pilots like mBridge and Dunbar, and work with asset managers such as Franklin Templeton and China AMC—illustrate its multi-pronged approach. Stablecoins are already unlocking institutional use cases, tokenised assets are on the horizon, and tokenised deposits promise efficiencies yet to be fully realised. In Michau’s words, the bank’s guiding principles remain unchanged: “We follow our clients where they want to go, we operate within our licence, and we bring regulators on the journey.” For Standard Chartered, the mainstreaming of digital assets is not about abandoning the past but about carefully embedding innovation into the fabric of global finance.
