Standard Chartered Plans Crypto Prime Brokerage as Wall Street Races In

Standard Chartered Plc is preparing to take another major step into the digital-asset arena, with early-stage plans to launch a crypto prime brokerage aimed at institutional traders, according to a Bloomberg report that cited people familiar with the matter. The London-based bank, whose assets under management (AUM) is estimated to be about $389 billion, is expected to house the new business within SC Ventures, its wholly owned venture capital and innovation arm, the sources said. The individuals cited in the report requested anonymity because the plans are not yet public. While discussions are ongoing, there is still no clear timeline for when the prime brokerage will formally debut. A Growing Footprint in Digital Assets Standard Chartered has been one of the most active global banks in the digital-asset sector. The lender is a backer of crypto custodian Zodia Custody and institutional trading venue Zodia Markets, two ventures that have positioned it ahead of many of its peers in offering regulated infrastructure for digital-asset exposure. In July last year, the bank became the first global systemically important institution to offer spot crypto trading for institutional clients. More recently, SC Ventures revealed in a December LinkedIn post that it is building a new digital-asset joint venture known as Project37C. The initiative was described as a “light financing and markets platform” offering custody, tokenization solutions and market access. The company did not explicitly label it a prime brokerage or name external partners, leaving the market to speculate on how it fits into Standard Chartered’s broader digital-asset roadmap. Navigating Regulatory Pressures Placing the new crypto prime brokerage under SC Ventures could help Standard Chartered sidestep stringent capital rules applied to banks holding digital assets on their balance sheets. Since late 2022, Basel III rules have imposed a punishing 1,250% risk charge on exposures to “permissionless” cryptoassets like Bitcoin and Ether. This is far higher than the risk weights attached to even some venture capital investments, which are capped at 400% under the current Basel package. Banks Accelerate Crypto Push Standard Chartered’s plans come at a time when major US banks are rapidly escalating their involvement in the digital-asset sector. JPMorgan Chase & Co. is considering offering crypto trading to institutional clients, following years of building blockchain-based settlement tools and tokenization initiatives. Morgan Stanley is also pushing deeper into crypto exposure. Last week, the firm filed to launch Bitcoin, Ether and Solana exchange-traded funds, lining it up to compete with BlackRock and ARK Invest in one of the fastest-growing product segments in finance. US spot crypto ETFs, first approved two years ago, have ballooned to roughly $140 billion in combined assets under management. All of that is amid the more crypto-friendly policy that has been introduced by sitting President Donald Trump. Since taking the White House for a second term in January 2025, he has signed several executive orders targeted at giving the industry regulatory clarity. Those executive orders include one to establish the US Strategic Bitcoin Reserve. He also signed an order to establish the White House Digital Asset Working Group, which has handed down recommendations to agencies such as the SEC and CFTC. The crypto industry has benefited from that regulatory clarity, which has led to an influx of institutional capital. This surge in capital inflows has subsequently increased demand for sophisticated trading infrastructure, including prime brokerage services traditionally available in equities and derivatives markets.