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with Dubai-based digital asset platform MidChains FZE to provide fiat settlement, segregated client money accounts and correspondent banking services, strengthening connections between the UAE’s regulated cryptocurrency sector and traditional financial institutions.
Under the agreement, Standard Chartered will support MidChains’ daily operations by facilitating cash settlements associated with digital asset transactions. The banking services will also allow client funds to be maintained separately from the company’s operational funds, while correspondent banking arrangements will support payments between financial institutions.
The partnership is expected to strengthen MidChains’ institutional services by providing access to established banking infrastructure, enabling businesses and investors to transfer funds between conventional financial markets and digital asset platforms.
Rola Abu Manneh, Chief Executive Officer for the UAE, Middle East and Pakistan at Standard Chartered, highlighted the UAE’s position as a leading international financial centre with an established regulatory environment for digital assets.
“The UAE has established itself as one of the world’s leading regulatory environments for digital assets and a global centre for financial activity. That creates a strong setting for regulated digital asset firms and established financial institutions to work together,” she said.
Abu Manneh added that the collaboration demonstrates how regulated digital asset businesses and international banks can work together to support institutional financial activities.
Basil Al Askari, Chief Executive Officer of MidChains, said the growing movement of institutional capital between traditional and digital markets requires banking infrastructure capable of supporting both sectors.
“Institutional capital moves continuously between traditional and digital markets, and the infrastructure supporting that activity must keep pace,” Al Askari said.
He explained that institutional investors need digital asset services connected to the banking systems they already use for their wider financial operations. The agreement with Standard Chartered will help MidChains provide that connectivity.
MidChains Operates Under Dubai’s VARA Regulatory Framework
MidChains FZE is listed as an active virtual asset broker-dealer on the public register of Dubai’s Virtual Assets Regulatory Authority (VARA). Its licence authorises the company to provide services to institutional, qualified and retail investors.
The company, which says it has operated as a regulated entity since 2019, provides institutional over-the-counter trading execution, regulated digital asset on- and off-ramp services, and stablecoin-enabled solutions for corporate treasury management and cross-border settlement.
MidChains’ investors include Mubadala Investment Company, Lunate, MIAX Exchange Group, Brevan Howard, GSR, Emurgo, Dhabi Holdings and Ava Labs.
Banking Partnership to Support Institutional Digital Asset Transactions
The agreement covers three banking services designed to support MidChains’ financial operations and institutional clients.
Fiat settlement: Standard Chartered will facilitate the cash component of digital asset transactions and support the platform’s daily settlement requirements.
Segregated client money accounts: Client funds will be maintained separately from MidChains’ corporate funds, providing a clearer distinction between customer assets and operational capital.
Correspondent banking: The arrangement will enable payments to be processed between financial institutions through established banking networks.
These services are particularly important for institutional investors and corporate clients that require reliable access to conventional banking systems when conducting digital asset transactions.
UAE Strengthens Links Between Traditional Banking and Digital Assets
The partnership reflects the UAE’s efforts to establish a regulated environment where digital asset businesses can operate alongside traditional financial institutions.
For MidChains, access to international banking services could help strengthen its ability to serve corporate and institutional investors seeking reliable settlement arrangements and established payment channels.
For Standard Chartered, the collaboration expands its involvement in the UAE’s digital asset ecosystem while requiring continued attention to compliance and risk management associated with cryptocurrency-related financial services.
Access to conventional banking infrastructure has remained a challenge for digital asset companies globally, with some financial institutions maintaining restrictions on cryptocurrency-related businesses because of regulatory and compliance concerns.
The agreement illustrates how established international banks can provide essential financial services to licensed digital asset platforms operating within defined regulatory frameworks.
As institutional participation in digital assets develops, partnerships between regulated cryptocurrency businesses and conventional banks could play an increasingly important role in supporting settlement efficiency, financial connectivity and cross-border transactions.
