DLA Piper advises Standard Chartered on first live digital asset prime brokerage trades

Global law firm DLA Piper is pleased to have supported Standard Chartered Bank in connection with its first live digital asset prime brokerage trades with LMAX Digital Broker Limited by providing legal advisory services for intermediation specifically.

The DLA Piper team, led by fintech and derivatives partner Paul Landless, supported the legal and contractual framework for the landmark pilot, including the documentation required for the trading, credit intermediation, and settlement arrangements within the digital asset prime brokerage model.

Paul was supported by Sophie Lessar, fintech regulatory partner in the firm's IPT practice, senior associate, Umah Kathirgamathamby, and trainee solicitor, Georgia Hughes.  

The pilot trades with LMAX Digital involved spot Bitcoin (XBT/USD) and Ethereum (XET/USD), with T+1 settlement through Standard Chartered, London Branch. Executed on LMAX Digital’s trading platform, the transactions saw Standard Chartered act as a credit intermediary, with settlement completed via its DIFC-based digital asset custody platform. The pilot marks the bank’s first digital asset credit intermediation transactions under a prime brokerage model, making it one of the first global systemically important banks (G-SIBs) to execute such trades.

The pilot demonstrates how established legal, risk and compliance frameworks can be effectively applied within institutional digital asset markets. It also lays the groundwork for the continued development of scalable prime brokerage models, providing institutional investors with efficient access to digital asset liquidity while ensuring clear contractual allocation of rights, obligations and risk.

Paul Landless, said: “This transaction is another watershed moment in the rapid growth of the institutional market in digital asset trading and prime brokerage. Acting for Standard Chartered at the cutting edge of market developments demonstrates our deep experience and understanding of this ecosystem.”

Sophie Lessar added: “The continued growth of digital asset markets will depend on innovation being underpinned by robust legal, regulatory and risk management frameworks. This pilot is a strong example of how established financial institutions can engage with digital assets within a robust and well-governed structure.”