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 major global 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 inflows.

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 access banking, custody, and digital asset services on a single integrated platform. Standard Chartered explained that clients can utilize USDC for on-chain payments and fund management.

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

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

Stablecoin competition is becoming even more fierce. 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, emphasizing joint governance and a revenue-sharing structure. Standard Chartered was also one of the initial institutions to receive a Hong Kong stablecoin issuer license in April, securing a foundation for using Hong Kong dollar-pegged stablecoins for cross-border payments.

[Key Article Summary]

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

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

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

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