Standard Chartered Plans to Launch Crypto Prime Brokerage via SC Ventures to Bypass Basel Capital Pressures, Integrate Custody, Trading, and Financing, Securing a Core Entry Point for Institutional Capital into the Crypto Market.
Standard Chartered to Establish Crypto Prime Brokerage through SC Ventures
According to Bloomberg, Standard Chartered is planning to launch a cryptocurrency prime brokerage business under its venture capital arm, SC Ventures.
Headquartered in London and managing assets worth up to $850 billion, this multinational banking leader is attempting to expand its services to meet the growing trading demands of institutional clients in the digital asset industry. This proposed new business aims to provide comprehensive solutions for hedge funds and asset managers, including core services such as digital asset custody, financing, trading, and clearing.
Currently, the plan is still in the early discussion stage, with details and a timeline for official launch yet to be finalized. This move by Standard Chartered reflects a fundamental shift in the attitude of major global banks toward digital assets, as cryptocurrencies are gradually being integrated into formal financial service systems. Prime brokerage is a key gateway for large investors, offering essential asset protection, loans, and capital support, enabling institutional investors to trade smoothly across multiple markets.
Strategic Layout to Avoid Basel Capital Burden
Choosing to establish the crypto prime brokerage under SC Ventures rather than directly within the core banking entity is a strategic move with far-reaching implications. This decision primarily aims to mitigate capital pressures imposed by regulatory restrictions.
According to Basel III regulations established in 2022, banks holding unpermitted crypto assets such as Bitcoin or Ethereum directly on their balance sheets must face extremely stringent risk weightings.
Under these rules, such assets can carry risk weights as high as 1,250%, meaning banks must hold a proportionally large amount of reserves to cover potential risks, significantly impacting their balance sheets and capital efficiency. In contrast, risk weights for certain risk investments are around 400%. By placing crypto operations within SC Ventures, an innovation and venture capital division, Standard Chartered can offer digital asset services to professional investors without overly consuming their balance sheet risk capacity. This structural approach is seen as a critical factor in whether the plan can be successfully implemented and commercially viable.
Comprehensive Crypto Ecosystem from Custody to Trading
Standard Chartered has long been involved in the crypto industry, and its efforts have not been built overnight. Its subsidiary, SC Ventures, has been a driving force in innovating at the intersection of traditional finance and the crypto ecosystem.
The bank has previously supported several digital asset platforms, including Zodia Custody, a digital asset custody service developed in partnership with Northern Trust, and Zodia Markets, a trading platform designed for institutional investors. In July 2025, Standard Chartered became one of the first global banks to directly offer cryptocurrency spot trading services to institutional clients, allowing them to buy and sell Bitcoin ($BTC) and Ethereum ($ETH) directly, rather than only participating through derivatives.
Further Reading
World’s First! Standard Chartered Launches Crypto Spot Trading for Institutions and Plans to Offer Derivatives
Additionally, SC Ventures revealed a joint digital asset project called “Project 37C” on LinkedIn in December last year. Described as a “lightweight financing and marketplace platform,” it is expected to offer custody, tokenization, and market access functionalities.
Image Source: LinkedIn SC Ventures revealed a joint digital asset project called “Project 37C” on LinkedIn in December last year.
Tokenization refers to converting asset rights into digital tokens on the blockchain. Although the term “prime brokerage” was not explicitly used at that time, recent reports about the prime brokerage plan clearly aim to further improve infrastructure by integrating leverage management, liquidity, and secure custody on a single platform, making operations more efficient for institutional clients.
Global Traditional Financial Giants Compete for Crypto Market Share
As institutional demand and regulated investment products continue to grow, competition among top global financial institutions has intensified. In the US, JPMorgan Chase is exploring providing crypto trading options for institutional clients and has begun promoting its blockchain-based JPM Coin deposit accounts earlier this year.
Meanwhile, Morgan Stanley is actively following suit, submitting applications to the SEC to launch Bitcoin, Ethereum, and Solana exchange-traded funds (ETFs). Currently, the assets under management for Bitcoin spot ETFs in the US have rapidly grown to nearly $140 billion, indicating a surge of large capital inflows into this market.
Further Reading
JPM Coin to Launch on Canton Chain! Complete Issuance and Redemption by Year-End for Real-Time Settlement
US Banking Giant First Mover! Morgan Stanley Applies for Bitcoin and Solana Spot ETFs
Wall Street Giants Accelerate! Morgan Stanley Launches Ethereum ETF in Less Than 24 Hours
Consolidation and acquisitions in the prime brokerage market also reflect this trend. Blockchain payments firm Ripple announced in April 2025 that it acquired crypto prime broker Hidden Road for $1.25 billion; later, in October, another well-known prime broker, FalconX, acquired large ETF issuer 21Shares. These high-value transactions demonstrate that prime brokers have become a primary entry point for large institutions entering the crypto space.
Meanwhile, custody banks like BNY Mellon have launched tokenized deposit services for institutional clients, and Barclays has invested in stablecoin startups to explore tokenized currency applications.
Further Reading
BNY Mellon Launches Tokenized Deposits! Fierce Competition on Wall Street as Firms Upgrade Settlement Infrastructure
Barclays Invests in Ubyx! Collaborates with US Startup to Explore Compliant Stablecoins and Tokenized Deposits
Institutional Demand Drives Growth of Crypto Prime Brokerage
Although the digital asset market faces short-term volatility and challenges, Standard Chartered remains optimistic about the long-term prospects of cryptocurrencies. According to a January 2026 report, Standard Chartered revised its Ethereum price target for the end of 2026 from an initial forecast of 12,000 to 7,500, and lowered its 2028 target from 30,000 to 22,000, but its research team still sees Ethereum potentially surpassing 40,000 by 2030, a long-term goal higher than the previous 30,000.
Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick, pointed out that although Bitcoin’s recent performance has been relatively weak, slightly dampening the overall digital asset rally against the dollar, Bitcoin’s dominant position in the industry remains clear.
As of early 2026, Bitcoin’s price continues to hover around 92,000. Despite concerns over tax-loss selling and market doubts about index rebalancing, institutional capital inflows still support the market. With more large banks and asset managers investing in infrastructure and regulatory frameworks gradually clarifying, crypto prime brokerage is expected to play an increasingly critical role in institutional finance.
The launch of this business by Standard Chartered is not only a response to current market trends but also a strategic move to secure a competitive edge in the future of a more regulated and larger-scale crypto financial era.
