Standard Chartered Said to Plan Crypto Prime Brokerage Expansion

Standard Chartered Plc is preparing to launch a new prime brokerage focused on crypto trading, according to people familiar with the matter. The London-based bank plans to house the business under its venture capital unit, SC Ventures. The initiative is still in early discussions, and no firm timeline has been set for the launch.

The bank has been an active participant in the digital asset space, investing in crypto custodians and institutional trading platforms. Last July, it became the first global systemically important bank to offer spot crypto trading for institutional clients.

SC Ventures recently announced a digital asset joint venture called Project37C, described as a lightweight financing and market platform. The project will provide services like custody, tokenization, and market access but has not yet disclosed any external partners.

Why Did This Happen?

The proposed prime brokerage is a strategic move to expand Standard Chartered's presence in digital assets. By placing the new unit under SC Ventures, the bank may avoid the high capital requirements imposed by Basel III rules for cryptoassets. These rules apply a 1,250% risk weight to "permissionless" cryptoassets like Bitcoin and Ether, much higher than for other risky investments.

The initiative aligns with the bank's broader digital asset strategy, which includes partnerships like its recent collaboration with Coinbase to offer institutional crypto services.

What Are the Regulatory Challenges?

Global regulators are currently reviewing the rules for bank exposure to cryptoassets. In October 2025, Bloomberg reported that discussions were underway to potentially revise the Basel capital requirements. These changes could affect how banks like Standard Chartered structure their digital asset offerings.

The high capital risk weights for crypto have discouraged some banks from offering direct trading services. By structuring the new business under SC Ventures, Standard Chartered may gain more flexibility in managing regulatory expectations.

How Does This Fit With Broader Trends?

Standard Chartered's move is part of a broader trend as major banks expand their crypto offerings. US banks, for instance, are also deepening their involvement in crypto trading, partly in response to the Trump administration's pro-industry policies.

JPMorgan Chase & Co. is reportedly considering offering crypto trading to institutional clients, and Morgan Stanley has filed for Bitcoin, Ether, and Solana ETFs. These developments signal growing acceptance of crypto as part of the institutional financial infrastructure.

What Are Analysts Watching Next?

Market observers are looking for signs of how the new prime brokerage will integrate with existing services. SC Ventures has previously backed Zodia Custody and Zodia Markets, which are now part of its digital asset portfolio.

Analysts are also monitoring the regulatory landscape, particularly the potential changes to Basel III rules. If these rules shift, banks may adjust their capital structures to accommodate higher risk weights or reduce exposure to certain cryptoassets.

The US Senate Banking Committee is also set to vote on the CLARITY Act on January 15, a bill aimed at addressing market manipulation in crypto trading. If passed, it could influence how banks and institutional investors approach crypto markets in 2026.