Standard Chartered Readying Launch of New Crypto Prime Brokerage

Standard Chartered Plc is preparing to launch a crypto prime brokerage, according to people with knowledge of the matter. The new service is expected to operate under the bank's venture capital arm, SC Ventures, and is in early-stage discussions. A timeline for the launch has not yet been finalized.

The move reflects the bank's broader digital asset ambitions as global financial institutions increasingly expand their involvement in the crypto sector. Standard Chartered already offers spot trading for cryptocurrencies to institutional clients, a service it launched in July 2025.

The bank's strategic decision is part of a broader trend among traditional banks to deepen their presence in digital assets. Institutions like JPMorgan Chase and Morgan Stanley have also announced or are considering similar initiatives. Morgan Stanley, for example, recently filed to introduce Bitcoin, Ether, and Solana ETFs.

Why the Move Happened

Standard Chartered's decision to launch the crypto prime brokerage under SC Ventures is partly driven by regulatory and capital requirements. The Basel III rules impose a 1,250% risk charge for exposure to permissionless cryptoassets like Bitcoin and Ether, which is significantly higher than for other assets. By operating the new business under its venture arm, Standard Chartered may avoid the full impact of these capital requirements on its core balance sheet.

SC Ventures, already active in the digital asset space, has backed ventures like Zodia Custody and Zodia Markets, and previously announced a digital-asset joint venture called Project37C. The unit is well-positioned to support the new crypto prime brokerage.

What Analysts Are Watching

Despite its expansion into crypto services, Standard Chartered has trimmed its price forecasts for Ether, reflecting broader weakness in the digital asset markets. The bank now expects Ether to reach $7,500 by the end of 2026, down from a previous target of $12,000, and $22,000 by the end of 2028, compared to its earlier forecast of $25,000. However, it still expects Ether to surpass $40,000 by 2030.

Geoff Kendrick, global head of digital assets research at Standard Chartered, noted that Bitcoin's underperformance has dampened prospects for other digital assets. The bank's revised forecasts reflect this broader market sentiment.

How the Market Reacts

The move also comes amid growing institutional interest in crypto. U.S. spot crypto ETFs now manage nearly $140 billion in assets, signaling increased confidence among institutional investors. Prime brokerages, which provide critical services like financing, custody, and market access, are seen as key infrastructure for the next phase of crypto growth.

Recent developments in the prime brokerage space include Ripple's $1.25 billion acquisition of Hidden Road and FalconX's acquisition of 21Shares. These deals highlight the growing importance of prime brokerages in facilitating institutional access to crypto markets.

Standard Chartered's initiative positions the bank to compete more effectively in a rapidly evolving market. As regulatory frameworks continue to evolve and institutional demand grows, the bank's move underscores its commitment to staying at the forefront of digital asset innovation.

Strategic Implications

The bank's strategic shift also has broader implications for the digital asset ecosystem. By offering institutional-grade services through a dedicated venture unit, Standard Chartered aims to provide a safer and more regulated route for institutional investors to access crypto assets.

The development is also part of a larger trend in global finance. Banks are increasingly viewing digital assets as part of their core business rather than as a peripheral experiment. As the regulatory landscape becomes clearer, prime brokerages are expected to play a central role in connecting institutional capital with crypto markets.

Standard Chartered's move could influence how other global banks approach their digital asset strategies. As more traditional financial institutions enter the space, the crypto market is likely to see increased liquidity, deeper infrastructure, and more robust compliance frameworks.

Regulatory Outlook

Regulators are also paying closer attention to crypto-related activities. Global discussions are underway to revise capital rules for banks holding cryptoassets. In the U.S., the return of a pro-industry regulatory environment under President Donald Trump has encouraged banks to accelerate their crypto strategies.

The evolving regulatory landscape will shape how banks like Standard Chartered deploy their services. By housing its prime brokerage under SC Ventures, the bank is positioning itself to navigate these changes more flexibly while maintaining compliance with existing rules.

Standard Chartered has not yet confirmed the details of its plans, and a launch date has not been announced. However, the bank's increased involvement in digital assets suggests it is preparing for a future where crypto plays a more prominent role in global finance.