Standard Chartered appoints new crypto chief as bank turns bullish on bitcoin

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Standard Chartereds’ Global Head of Emerging Markets Foreign Exchange Research will lead the bank’s new crypto research team in London, holding the position on a permanent basis as it expands its presence in the growing industry .

Geoffrey Kendrick is now Head of Western Emerging Markets Crypto and FX Research at StanCharts, having served as Global Head of Emerging Market FX Research for five years.

He will lead a team in London providing information to clients looking to invest or trade crypto assets, based on the latest crypto developments and banks’ pricing outlook for assets such as bitcoin and ether.

Were now as a bank moving into crypto, as are many banks, KendricktoldFinancial News. I’ve been working in the background on this crypto thing for a while, I’d say all this year. Hopefully over time this will become a more important part as we start to negotiate and gain customer interest; it’s a pretty exciting new space.

Kendrick said that while his time will be split between crypto and FX, the bank has given him the flexibility to choose what he wants to write based on what’s interesting at all times.

Given that crypto goes up and down 10% in a day, I would say this is likely to get more attention than, say, euro / dollar, which goes up 10% in a year, he said.

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StanChart has made significant strides in cryptoassets this year, including developing its own crypto exchange for European institutional investors to compete with BitGo, Coinbase and Gemini.

The UK bank also has a crypto custody service with Northern Trust named Zodia, which received FCA clearance to operate in July and now provides commercial services to institutional clients.

The gap between traditional finance and the digital world is narrowing day by day, said Eric Robertsen, global head of research and chief strategist at StanChart. As our clients begin to explore cryptocurrencies, other digital assets, and decentralized finance, we aim to add value to their investment and risk management strategies and help them navigate and integrate this. new asset class in their businesses.

Kendrick caused a stir with the banks’ coverage of bitcoin and ether on September 7, declaring that bitcoin will be the eventual global winner as a currency, rather than a pure investment. His team has predicted that the price of cryptoassets will more than double to $ 100,000 by the start of next year and hit $ 175,000 in the long run.

This is what the markets are starting to aim for. I don’t know what the timeline is, but if we move forward 20 years quickly, it’s pretty clear to me that many countries will be completely cashless, Kendrick said. Earlier examples of pioneers, especially in the tech space, suggest that bitcoin is the most likely winner in this space.

Analysts’ stance on bitcoin contrasts sharply with that of asset managers such as Amundi, which said in March that the concept of investing in the token as a form of digital gold was an illusion due to its relative youth.

You could have made the same point in 1996 about that crazy Bezos who started an online bookstore, Kendrick said. Clearly I’m guessing you can pick the winner so I have to assume that bitcoin’s 13 year lifespan so far gives it a huge first-mover advantage.

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Regulators are rushing to develop rules for the industry as it grows, prompting a series of warnings issued by watchdogs in recent months against the biggest crypto players, including Binance and Coinbase.

The crackdown has caused a delay in approvals for industry-regulated financial instruments such as exchange-traded funds, which Kendrick does not plan to materialize in London or New York for two or three years.

Something that allows ETFs that don’t crush asset class will be the next regulatory change, he said. And when that happens, you’ll likely have a pretty big increase in the asset class as a whole.

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To contact the author of this story with comments or news, email Emily Nicolle

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