Standard Chartered Plans to Launch Crypto Prime Brokerage Under Its VC Unit

Standard Chartered Plc is preparing to launch a crypto prime brokerage as part of its digital asset strategy, according to multiple sources familiar with the matter. The new business will be housed within its wholly owned venture capital unit, SC Ventures. The initiative is still in early discussions and no firm timeline for the launch has been established.

The bank has been increasingly active in the digital asset space in recent years. In July 2025, it became the first global systemically important bank to offer spot crypto trading for institutional clients. It also backs several crypto ventures, including custodian Zodia Custody and trading platform Zodia Markets.

Setting up the new business within SC Ventures allows Standard Chartered to avoid the heavy regulatory capital charges imposed by Basel III rules for crypto exposure. These rules require a 1,250% risk charge for exposure to permissionless cryptoassets like Bitcoin and Ether, making them far costlier than other high-risk investments.

Why Is This Move Significant?

The decision reflects a broader trend among global banks to expand their crypto offerings. With the rise of institutional participation in digital assets, prime brokerage services—offering custody, financing, and securities lending—are becoming essential infrastructure. Standard Chartered’s move positions it to capture a share of this growing market.

The Basel III framework’s stringent capital requirements have made it less attractive for banks to directly hold cryptoassets on their balance sheets. By placing the new business in its venture unit, Standard Chartered can reduce capital intensity while still engaging in the market.

How Does This Fit Into Market Trends?

US banks are also deepening their involvement in crypto. JPMorgan Chase & Co. is reportedly considering offering institutional cryptocurrency trading services. Morgan Stanley recently filed to introduce Bitcoin, Ether, and Solana ETFs. These moves signal a broader shift in the financial industry’s approach to digital assets.

The institutional crypto market has been expanding rapidly. US spot crypto ETFs now manage about $140 billion in assets since their approval two years ago. This growth has spurred increased demand for sophisticated services like prime brokerage, making it a key segment for future expansion.

What Are Regulators Doing to Adapt?

Regulatory frameworks for crypto are still evolving. The UK’s Financial Conduct Authority will begin accepting applications for crypto services in September 2026 under a new regulatory regime. Broader oversight is expected to start in October 2027.

Meanwhile, global regulators are discussing potential reforms to Basel III rules governing banks’ crypto exposure. These changes could ease capital requirements, potentially encouraging more banks to enter the market.

South Korea is also shifting its stance, lifting a nine-year ban on corporate crypto investment. The government has also announced an economic strategy aiming to execute 25% of national treasury funds through a central bank digital currency (CBDC) by 2030 according to reports.

What Are Analysts Watching Next?

Market participants are closely following how Standard Chartered and other banks navigate the regulatory landscape. The success of the bank’s new venture will depend on how quickly it can develop infrastructure and secure partnerships in the fast-moving crypto space. Analysts are also watching for further regulatory updates in both the US and UK.