Standard Chartered Preparing Crypto Prime Brokerage as Institutional Demand Rises

Standard Chartered Plc is preparing to launch a crypto prime brokerage service for institutional clients. The London-based bank will house the new venture within its wholly owned innovation unit, SC Ventures. This move aims to provide custodial, trading, and financing services for digital assets like Bitcoin and Ether according to Bloomberg.

The decision to place the service within SC Ventures is a strategic step to avoid the stringent Basel III capital requirements for crypto exposures. Current rules apply a 1,250% risk charge to permissionless cryptoassets, a rate much higher than traditional assets or venture capital investments as reported.

The launch is part of Standard Chartered's broader digital-asset strategy. The bank has previously invested in Zodia Custody and Zodia Markets and became the first global systemically important bank to offer spot crypto trading for institutional clients in July 2025 according to Coinpedia.

Why the Move Happened

Institutional demand for regulated crypto infrastructure is growing rapidly. Standard Chartered's SC Ventures announced a joint venture, Project37C, in December 2025. The initiative will offer custody, tokenization, and market access. While not explicitly labeled a prime brokerage, it is seen as a precursor to the upcoming service as TradingView reports.

The bank's decision aligns with global shifts in policy. The return of Donald Trump to the U.S. presidency has brought a more favorable regulatory environment for digital assets. This has encouraged major U.S. banks like JPMorgan and Morgan Stanley to expand their crypto offerings according to CoinPaper.

How Markets Responded

The digital asset market is reacting positively to increased institutional participation. U.S. spot crypto ETFs, which hit $140 billion in assets under management, have shown robust inflows. Standard Chartered's move is expected to further institutionalize the market and improve liquidity according to The Block.

Morgan Stanley recently filed for Bitcoin, Ether, and Solana ETFs, signaling broader Wall Street interest in regulated crypto products. These ETFs, if approved, will bring new capital to the sector and raise the profile of digital assets in mainstream finance as Bloomberg reports.

What Analysts Are Watching

Analysts are closely following how the new crypto prime brokerage will integrate with existing services. The success of similar offerings by BNY Mellon and JPMorgan suggests that institutional-grade infrastructure is now a key differentiator in the market. Standard Chartered's global presence in 59 markets may give it an edge, particularly in Asia, Africa, and the Middle East according to Bitcoin World.

The bank's ability to manage risk will also be under scrutiny. Standard Chartered plans to implement multi-signature wallets, insurance coverage, and real-time monitoring for its clients' digital assets. These measures are intended to address institutional concerns about security and regulatory uncertainty according to Bitcoin World.

Regulators are also watching closely. Discussions are underway to revise Basel III rules governing crypto holdings. Any changes could significantly affect how banks like Standard Chartered structure their digital asset businesses and whether they continue to house these services in non-core units like SC Ventures as Bloomberg reports.

The crypto prime brokerage is still in early development and no launch date has been announced. However, Standard Chartered has emphasized a gradual rollout across approved jurisdictions. The bank will likely prioritize compliance and client testing before making the service widely available according to Bitcoin World.

The broader trend of traditional financial institutions entering the crypto space continues to gain momentum. As institutional-grade services expand, the digital asset market is expected to become more structured and regulated. This shift could attract more conservative investors and improve overall market stability according to CoinPaper.