- Standard Chartered advances crypto prime brokerage plans through its SC Ventures unit
- Global banks intensify digital asset strategies as institutional demand steadily increases
- Regulatory structures reshape how traditional lenders expand into crypto markets
Standard Chartered is advancing plans to enter crypto prime brokerage as institutional demand strengthens, highlighting how large banks integrate digital assets into core strategies.
The London-based lender intends to house the operation within SC Ventures, its venture and innovation arm. According to Bloomberg, this structure keeps the business outside the main regulated entity. This arrangement may ease capital pressure tied to direct crypto exposure, as global banking rules impose higher charges on digital assets than venture-style investments.
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Regulatory structure shapes the crypto strategy
Under Basel III, cryptocurrencies such as Bitcoin attract a 1,250% risk weight, while certain venture capital investments carry a 400% risk weight. Consequently, placing the business within SC Ventures improves capital efficiency and allows Standard Chartered to scale services without stressing its balance sheet.
The strategy reflects a growing preference for flexible structures as banks redesign internal frameworks rather than delay crypto participation. Additionally, the plan builds on earlier digital asset initiatives, indicating a gradual expansion rather than a sudden pivot.
Project37C hints at prime brokerage ambitions
The prime brokerage concept follows work on a digital asset venture known as Project37C, which focused on custody, tokenization, and institutional market access. Project37C was described as a light financing and markets platform, although it stopped short of formally identifying as a prime brokerage service.
The initiative also did not name external partners, suggesting the project remained adaptable during early development. Standard Chartered has not confirmed operational timelines and declined to comment on details surrounding the reported plans.
Policy shifts encourage institutional crypto adoption
Across markets, banks are increasing crypto exposure amid shifting policy conditions following President Donald Trump returning to the White House. Several lenders have progressed from experimentation to live digital asset services, as trading, custody, and blockchain-based payments draw institutional interest.
JPMorgan Chase & Co. continues expanding blockchain products for institutional clients while exploring broader cryptocurrency trading access. JPMorgan has evaluated additional digital asset trading services, signaling confidence in long-term institutional demand.
Meanwhile, Morgan Stanley has filed to launch exchange-traded funds linked to Bitcoin, Ether, and Solana, aligning with U.S. asset managers.
Competition intensifies among global lenders
Custody-focused banks are also advancing tokenized money solutions, as Bank of New York Mellon Corp. activated tokenized deposits for institutional clients. Elsewhere, partnerships remain a preferred expansion route, with Barclays investing in stablecoin startup Ubyx.
Similarly, HSBC plans to expand tokenized deposit services to corporate clients across selected international markets. Within this competitive environment, Standard Chartered shows measured ambition while maintaining regulatory and capital discipline.
The move underscores intensifying competition for institutional crypto clients, as prime brokerage increasingly mirrors traditional financial market infrastructure.
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