Standard Chartered Plc is gearing up to significantly expand its footprint in the digital asset space, with plans to introduce a crypto prime brokerage tailored for institutional clients. This information comes from a Bloomberg report citing sources familiar with the bank”s intentions.
The London-based financial institution, which has approximately $389 billion in assets under management, intends to integrate this new venture within SC Ventures, its dedicated innovation and venture capital arm. The specifics of the timeline for the launch remain unclear, as discussions are still in early stages.
Standard Chartered has already established itself as a proactive player in the digital asset sector, having invested in initiatives like Zodia Custody and Zodia Markets. These ventures have positioned the bank favorably among its competitors by providing regulated infrastructure for exposure to digital assets.
In July 2022, Standard Chartered made headlines by becoming the first globally significant bank to offer spot trading of cryptocurrencies for institutional clients. Recently, SC Ventures announced plans for a new digital asset joint venture dubbed Project37C, described as a “light financing and markets platform” that will offer custody, tokenization solutions, and market access.
Though the company has not explicitly categorized this initiative as a prime brokerage nor disclosed any external partners, it has sparked speculation regarding how it fits into the bank”s broader strategy for digital assets.
By situating the new crypto prime brokerage within SC Ventures, Standard Chartered may be able to navigate the stringent capital requirements enforced on banks that hold digital assets on their balance sheets. Since late 2022, the Basel III regulations have imposed a steep 1,250% risk charge on exposures to “permissionless” cryptocurrencies such as Bitcoin and Ethereum, significantly higher than the risk weights assigned to many venture capital investments.
Standard Chartered”s recent move aligns with a broader trend as major U.S. banks accelerate their engagement with the digital asset sector. For instance, JPMorgan Chase & Co. is exploring the potential to offer crypto trading to institutional clients, building on its previous efforts in blockchain-based settlement tools and tokenization projects. Similarly, Morgan Stanley is deepening its involvement in cryptocurrencies, recently filing to launch exchange-traded funds for Bitcoin, Ethereum, and Solana.
This surge in activity coincides with a more favorable regulatory environment under the current U.S. administration, which has implemented several executive orders aimed at clarifying regulations for the industry. This has resulted in an influx of institutional capital into the crypto sector, thereby increasing the demand for advanced trading infrastructure, including prime brokerage services.
