Standard Chartered to Launch Crypto Brokerage Amid Regulatory Uncertainty

Standard Chartered Plc is preparing to launch a prime brokerage for cryptocurrency trading. The London-based lender will operate the new business under its wholly owned venture capital unit, SC Ventures. The move is part of a broader effort by global banks to expand into digital assets amid growing institutional interest.

The prime brokerage will serve institutional clients by providing custody, tokenization, and market access. Standard Chartered aims to avoid direct exposure to Basel III capital requirements by housing the service within SC Ventures.

The bank has already made strides in the digital asset space. It launched spot crypto trading for institutional clients in July 2025 and is developing a joint venture called Project37C. The initiative reflects the increasing demand for crypto services from professional investors.

Why Did This Happen?

Regulatory uncertainty is a key factor shaping Standard Chartered's approach to crypto. Under Basel III rules, banks face a 1,250% risk charge for exposure to permissionless cryptoassets like Bitcoin and Ether. By structuring the new business within SC Ventures, the bank may be able to mitigate the capital burden associated with holding digital assets on its balance sheet.

The decision also aligns with broader trends in the financial industry. U.S. banks are also expanding into crypto services. These developments signal a shift in how traditional financial institutions view digital assets.

What Are Analysts Watching Next?

Analysts are closely monitoring how the regulatory landscape evolves. Global regulators are in talks to potentially overhaul rules governing banks' crypto holdings. A change in these rules could significantly impact the cost structure and viability of crypto services for banks.

Another key factor is the competitive landscape. Major deals in the crypto prime brokerage space have already occurred, including Ripple's acquisition of Hidden Road and FalconX's purchase of 21Shares. Standard Chartered's entry could reshape the market and attract more institutional participation.

The bank's strategic focus on custody and financing solutions is seen as a response to critical gaps in the current market. These services are essential for institutional investors seeking secure and regulated access to digital assets.

How Does This Impact the Market?

Standard Chartered's move could accelerate institutional adoption of cryptocurrencies. The bank's global presence and regulatory expertise provide institutional clients with confidence often lacking in native crypto firms. This could lead to increased liquidity and more sophisticated trading strategies in the crypto space.

However, challenges remain. The high capital requirements and evolving regulatory environment create uncertainty for banks entering the market. Standard Chartered's ability to navigate these challenges will be closely watched by both investors and regulators.

The broader banking industry is also adapting to the rise of crypto. Spot crypto ETFs now manage nearly $140 billion in assets, indicating strong institutional interest. As more banks enter the space, the market structure for digital assets is likely to shift toward a more integrated model.

The launch of a crypto prime brokerage by Standard Chartered represents a significant step in the institutionalization of crypto markets. It reflects the growing demand for regulated and structured access to digital assets and highlights the evolving role of traditional financial institutions in this space.