Standard Chartered to Launch Crypto Prime Brokerage via Venture Capital Division

Standard Chartered is set to expand its involvement in digital assets by establishing a crypto prime brokerage. This initiative will be part of SC Ventures, its dedicated venture capital arm, as major banks globally strive for a stake in the burgeoning institutional crypto market.

Key Takeaways

Standard Chartered plans to launch a crypto prime brokerage under its venture capital arm, SC Ventures.
The bank is already a significant player in the digital asset space, having initiated spot crypto trading for institutional clients.
Discussions about the new venture are still preliminary, with no confirmed timeline for the launch.
Other major banks are also increasing their efforts in the cryptocurrency sector, developing new financial products like ETFs.
Standard Chartered is collaborating with local entities in Malaysia to explore a ringgit-backed stablecoin.

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Standard Chartered's Strategic Move into Digital Assets

Standard Chartered is actively enhancing its presence in the digital asset sector by preparing to roll out a crypto prime brokerage, as reported by Bloomberg. This initiative reflects the growing trend among leading global banks to position themselves competitively within the institutional crypto market.

The London-based bank intends to place this new brokerage under SC Ventures, its fully-owned venture capital division, instead of within its main corporate and investment banking operations. Sources familiar with the situation indicated that discussions are still in early stages, and details regarding the launch date remain unfinalized, with anonymity requested due to the private nature of these plans.

SC Ventures: A Key Player in Crypto

Standard Chartered has quickly become a leading global bank in the realm of digital assets. The bank has invested in critical infrastructure developments, such as Zodia Custody, which focuses on crypto custody, and Zodia Markets, designed for institutional trading.

In July, Standard Chartered became the first global systemically important bank to introduce spot crypto trading services to institutional clients. Additionally, SC Ventures has expressed broader ambitions within the digital asset space. In December, the unit announced the creation of Project37C—a digital asset joint venture aimed at providing services in custody, tokenization, and market access, showcasing overlapping capabilities with prime brokerage functions.

Banks Continue to Expand into Digital Asset Markets

The announcement coincides with a time when global regulators are discussing potential updates to crypto capital regulations, yet banks are moving forward with their initiatives. In the United States, firms like JPMorgan Chase & Co. are exploring crypto trading options for institutional clients, while Morgan Stanley has filed for the introduction of exchange-traded funds (ETFs) focusing on Bitcoin, Ether, and Solana, placing itself in competition with major asset managers like BlackRock Inc. and ARK Investment Management.

Currently, U.S. spot crypto ETFs manage approximately $140 billion in assets, which indicates a surge in institutional engagement. Prime brokerages, which provide essential services like financing, securities lending, and custody, are increasingly recognized as vital components for the next phase of growth in the crypto sector.

Notably, Ripple recently acquired Hidden Road for $1.25 billion, and in October, crypto prime broker FalconX announced its acquisition of 21Shares. Standard Chartered’s planned move indicates a clear intention among global banks to engage comprehensively across the entire spectrum of the crypto market.

Collaboration for a Stablecoin in Malaysia

In a significant step towards enhancing its digital asset presence in Malaysia, Standard Chartered, along with Bank Malaysia and Capital A (the parent company of AirAsia), has announced its intentions to explore the development of a ringgit-pegged stablecoin. The two companies signed a letter of intent to collaborate on this project, which falls under Malaysia’s Digital Asset Innovation Hub—a framework initiated by Bank Negara Malaysia (BNM) in June aimed at fostering innovation in tokenization and blockchain-based financial services.

This ongoing effort underscores Standard Chartered's commitment to exploring opportunities in the digital assets space and aligning with regulatory frameworks to facilitate growth and innovation.