Standard Chartered Plans Crypto Prime Brokerage Through Venture Arm

Standard Chartered is developing a prime brokerage for cryptocurrency trading, positioning the service within its venture capital arm rather than its main banking operations, Bloomberg reported Monday, citing people with knowledge of the plans.

The strategy allows the London-based lender to circumvent stringent Basel III capital rules that impose a 1,250% risk weighting on direct bank holdings of Bitcoin and Ether – more than triple the charges applied to high-risk venture investments.

People familiar with the matter, who spoke on condition of anonymity, said the initiative remains in early planning stages with no confirmed launch date. The bank declined to comment through an SC Ventures spokesperson.

SC Ventures revealed last month it is building Project37C, a digital asset venture offering custody and tokenization services, though that announcement made no reference to prime brokerage capabilities or identified any partners.

The bank has positioned itself as a front-runner among global systemically important banks in digital assets. It announced spot crypto trading for institutions last July and holds stakes in Zodia Custody and Zodia Markets.

Prime brokerage services, which typically bundle financing, securities lending, and custody, have become a focal point for institutional crypto expansion. Industry consolidation has accelerated, with Ripple's $1.25 billion acquisition of Hidden Road and FalconX's takeover of 21Shares both closing in recent months.

U.S. institutions are moving aggressively into the space. JP Morgan is evaluating institutional crypto trading services, while Morgan Stanley recently filed to launch Bitcoin, Ether, and Solana ETFs, challenging established players like BlackRock and ARK.

Spot crypto ETFs in the U.S. have accumulated roughly $140 billion since regulators approved the products two years ago, accelerating institutional market entry.

Regulators globally are reassessing capital treatment for bank crypto exposure, with discussions underway about potential framework revisions, according to previous reports.