TL;DR
- Prime Brokerage Development: Standard Chartered is preparing a crypto prime brokerage housed in SC Ventures, a structure that may help the bank navigate Basel III’s 1,250% risk weight on Bitcoin exposures.
- Digital Asset Expansion: The initiative builds on SC Ventures’ Project37C, which focuses on custody, tokenization, and market access, signaling broader institutional ambitions in digital assets.
- Industry Momentum: Major banks, including JPMorgan, Morgan Stanley, BNY Mellon, Barclays, and HSBC, are accelerating digital asset products, tokenized deposits, and strategic partnerships amid a more permissive U.S. policy environment.
Standard Chartered is preparing to launch a crypto prime brokerage service as part of a broader digital asset strategy that continues to gain momentum. The bank will reportedly place the new operation inside SC Ventures, its innovation and venture arm, according to Bloomberg. The structural choice positions the initiative outside the bank’s core regulated entity, a move that may help Standard Chartered navigate Basel III’s 1,250% risk weight applied to direct Bitcoin exposures.
Banks explore structural flexibility for digital asset services
Bloomberg’s report indicates that housing the business within SC Ventures could allow Standard Chartered to avoid the strict capital requirements tied to direct digital asset holdings. Under current Basel III rules, banks must assign a 1,250% risk weight to exposures like Bitcoin, far higher than the 400% weight applied to certain venture capital investments. The bank’s approach reflects a growing trend among global lenders seeking operational flexibility while expanding digital asset capabilities.
SC Ventures builds on earlier digital asset initiatives
The prime brokerage plan follows a December LinkedIn post from SC Ventures describing work on Project37C, a digital asset joint venture. The announcement outlined a “light financing and markets platform” offering custody, tokenization, and market access. Although the post did not explicitly label the effort as a prime brokerage or identify external partners, it signaled Standard Chartered’s intention to broaden its digital asset infrastructure and explore new institutional services.
Large banks accelerate digital asset adoption
Standard Chartered’s move comes as major banks expand their digital asset offerings amid a more permissive U.S. policy environment following President Donald Trump’s return to the White House. Institutions such as JPMorgan, Morgan Stanley, and BNY Mellon have advanced products across trading, custody, tokenized deposits, and blockchain-based payments. These developments highlight a shift from exploratory pilots to live, revenue-generating digital asset services.
Global lenders pursue tokenization and strategic partnerships
Beyond trading and custody, banks are increasingly exploring tokenized money products and strategic investments. BNY Mellon recently activated a tokenized deposit service for institutional clients, while Barclays acquired a stake in stablecoin startup Ubyx to test tokenized money use cases. HSBC plans to expand its tokenized deposit service to corporate clients in the U.S. and the United Arab Emirates, underscoring the global acceleration of blockchain-based financial infrastructure.
