Standard Chartered, First Major Bank to Directly Issue USDC...Enters Head-on Competition with OpenUSD Offensive

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Standard Chartered is accelerating the institutional integration of the stablecoin market by becoming the first global major bank to offer direct USDC issuance and redemption services to institutional clients. Amid intensifying competition due to the OpenUSD offensive, the banking sector's direct entry into stablecoin infrastructure is emerging as a new turning point for institutional capital inflow.

According to crypto media outlet CryptoPotato on July 2 (local time), Standard Chartered has become the first global systemically important bank (G-SIB) to allow institutional clients to directly issue and redeem USDC on its banking platform. Eligible institutional clients can access traditional financial services and stablecoins through a single onboarding process without needing to open a separate Circle account.

This service was developed in collaboration with Circle. The initial service will be offered through its Dubai International Financial Centre (DIFC) business unit, allowing clients to utilize banking, custody, and digital asset services on a single integrated platform. Standard Chartered explained that clients can use USDC for on-chain payments and liquidity management.

Roberto Hoornweg, Chief Executive of Corporate & Investment Banking at Standard Chartered, stated, "Digital assets are becoming an increasingly important component of global financial infrastructure, and institutional clients demand the same level of trust and governance that underpins traditional markets." Hoornweg explained that this launch is a measure to support increased institutional participation in the crypto market based on existing compliance and risk management standards.

The market also evaluated that this service could lower the barrier for institutional access to USDC. Hupzy of Spot On Chain analyzed on X (formerly Twitter) that if a global systemically important bank directly enters the USDC issuance process, it could reduce the operational burden for institutions that previously relied on exchanges or OTC desks to acquire stablecoins. He believed that such a structure could increase institutional use of USDC and impact the expansion of on-chain liquidity.

Stablecoin competition is intensifying. Just one day before Standard Chartered's announcement, OpenUSD, involving over 140 companies including Visa, Mastercard, Stripe, Coinbase, Ripple, and BlackRock, was unveiled. OpenUSD introduced new variables into the institutional stablecoin infrastructure competition with its joint governance and revenue-sharing structure. Standard Chartered was also one of the early institutions to receive a Hong Kong stablecoin issuer license in April, securing a foundation to utilize Hong Kong dollar-pegged stablecoins for cross-border payments.

[Article Key Summary]

-Standard Chartered is the first global systemically important bank to provide direct USDC issuance and redemption services to institutional clients.

-The initial service will commence through its Dubai International Financial Centre business unit, consolidating banking, custody, and digital asset services into a single platform.

-Amid intensifying stablecoin competition following the launch of OpenUSD, Standard Chartered's move is regarded as a symbolic event for institutional finance's entry into stablecoins.

*Disclaimer: This article is for informational purposes only and does not take responsibility for investment losses based on it. The content should be interpreted solely for information provision.*