Standard Chartered is preparing to expand its presence in cryptocurrency markets by developing a prime brokerage service focused on digital assets, according to a Bloomberg report citing people familiar with the matter. The move signals the bank’s latest step toward meeting growing institutional demand for crypto trading and related services.
The London-based lender is expected to house the initiative within SC Ventures, its venture capital and innovation arm. Placing the business there would keep it outside Standard Chartered’s core regulated banking entity. This structure could offer practical advantages, particularly around capital treatment. Under current Basel III rules, banks face a steep 1,250% risk weight for direct exposure to assets such as Bitcoin, compared with a 400% weight applied to certain venture capital investments. By operating through SC Ventures, the bank may reduce the regulatory burden associated with holding or facilitating digital assets.
While the prime brokerage service has not yet been formally announced, the plans appear to build on earlier work. In December, SC Ventures shared details on LinkedIn about a digital asset initiative called Project37C. The project was described as a “light financing and markets platform” designed to provide services including custody, tokenization, and market access. At the time, the post did not label the initiative as a prime brokerage or name any external partners.
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Banks pick up pace on digital assets
Standard Chartered’s reported plans come as major banks globally move from experimentation to execution in digital assets, particularly under a more accommodating policy environment in the United States following President Donald Trump’s return to office.
Several large institutions have recently rolled out or expanded crypto-related offerings. JPMorgan Chase, which introduced blockchain-based deposit accounts in 2019, began extending its JPM Coin to institutional clients in November. The bank has also indicated it is exploring cryptocurrency trading services for its institutional customer base.
Morgan Stanley has taken steps on the investment side, filing to launch exchange-traded funds tracking Bitcoin, Ether, and Solana. If approved, the products would place the firm alongside established players such as BlackRock and ARK Invest in the U.S. spot crypto ETF market.
Custody banks are also advancing tokenized money initiatives. Bank of New York Mellon, which safeguards nearly $58 trillion in assets, activated a tokenized deposit service for a group of institutional clients earlier this month. Other lenders are pursuing partnerships and equity investments, including Barclays’ recent stake in stablecoin startup Ubyx and HSBC’s plans to expand tokenized deposit services to corporate clients in the U.S. and the UAE.
A cautious but clear direction
Taken together, these developments suggest that traditional banks are becoming more comfortable offering crypto and blockchain-based services, even as regulatory and capital considerations continue to shape how those services are structured. For Standard Chartered, a crypto prime brokerage housed within SC Ventures could provide a flexible way to participate in digital asset markets while managing risk and compliance.
As institutional interest in cryptocurrencies continues to grow, the bank’s next steps will be closely watched by clients and competitors alike.
