- Standard Chartered is considering launching a crypto prime brokerage under SC Ventures.
- The structure helps bypass heavy Basel III capital requirements.
- Growing institutional demand drives banks deeper into digital assets.
Wall Street giants have been taking a cautious and sceptical approach to cryptocurrencies for years. Now, the traditional banking institutions are experimenting with the possibilities of digital assets, with major players like Standard Chartered entering the space.
The latest reports reveal that Standard Chartered is planning to expand its digital asset ambitions by launching a crypto prime brokerage. This move significantly underscores the growing institutional confidence in crypto and blockchain.
Standard Charters Explores Crypto Prime Brokerage
According to a Bloomberg report today, Standard Chartered, one of the largest multi-national banks, is launching crypto prime brokerage services via SC Ventures, its venture capital firm. The discussion surrounding the project, called Project37C, is currently at its initial phase and not yet finalized. But it highlights the financial institution’s interest in crypto and its vision to expand its blockchain ambitions.
It is worth noting that Standard Chartered has steadily expanded its digital asset footprint through SC Ventures, supporting a range of crypto-focused initiatives. These include investments in platforms such as Zodia Custody, an institutional-based digital asset custodian.
Notably, Standard Chartered is taking a strategic approach to building its crypto business. As the bank uses SC Ventures for its crypto mission, it can escape some of the conservative regulatory requirements. For instance, standard banking rules make it costly for traditional financial institutions to hold assets like Bitcoin and other cryptocurrencies.
In addition, the approach also provides more flexibility. It allows the bank to avoid the full weightage of Basel III capital rules, enabling it to roll out crypto market access and trading services more quickly at a lower cost.
Wall Street Giants are Embracing Crypto
Significantly, Standard Chartered’s foray into crypto is not an isolated move. It aligns with a broader trend where traditional banking giants are increasingly adopting and exploring crypto and blockchain technologies.
As the US government has adopted a more crypto-friendly policy under President Donald Trump, more Wall Street institutions are exploring opportunities in the crypto space. More banks like JPMorgan have moved to expand their offerings. While JPMorgan has reportedly been exploring the launch of a crypto trading desk, Morgan Stanley has already launched a crypto-focused fund. Recently, as the Times of Blockchain reported, JPMorgan launched its first tokenized money market fund on the Ethereum blockchain.
Standard Chartered already allows institutional clients to trade Bitcoin and Ether. With the potential launch of the crypto prime brokerage, the bank will be able to expand its capabilities, adding services such as lending, enhanced risk management, and an overarching trading infrastructure.
Interestingly, Standard Chartered has also rolled out a tokenized deposit solution that allows clients to transfer funds from traditional bank accounts into blockchain-based infrastructure. The launch followed the bank’s successful pilot of SGD-denominated liquidity transfers for Ant International and marks a broader expansion of its tokenized efforts.
The bank also recently announced a partnership with Coinbase to build a full suite of crypto prime services for institutional clients. The collaboration covers key offerings like trading, custody, staking, and lending.
