- Standard Chartered plans a crypto prime brokerage to serve institutions while limiting balance sheet risk exposure.
- The bank aims to meet rising institutional crypto demand through trading custody financing and risk tools support.
- Growing crypto prime brokerage interest shows banks prefer infrastructure over direct asset exposure models globally.
Standard Chartered is exploring an expansion into crypto trading through a dedicated prime brokerage service for institutional clients. The London-based bank manages about $850 billion in assets and wants to meet rising professional demand for digital asset trading.
The initiative reflects a broader shift among global banks toward crypto market infrastructure. Notably, Standard Chartered aims to support institutional investors rather than retail users. The plan remains under discussion and has not reached a launch stage.
Standard Chartered Targets Institutional Crypto Demand
According to people familiar with the matter, the bank plans to house the crypto prime brokerage within SC Ventures. This unit leads innovation and new business lines at Standard Chartered. As a result, the structure allows experimentation without direct balance sheet exposure.
Moreover, the prime brokerage would make crypto trading easier for professional investors. The service would combine execution with financing, custody, and risk management tools. Consequently, institutions could manage trades more efficiently across volatile markets.
At the same time, negotiations are in early stages. Therefore, no clear timeline exists for when the service could go live. Still, the move signals growing confidence in institutional crypto participation.
Regulatory Pressures Shape the Brokerage Structure
Regulation plays a key role in the bank’s approach. Under Basel III rules, banks face steep capital penalties for holding permissionless crypto assets. In some cases, risk weights can reach 1,250 percent.
Because of this, banks avoid holding crypto directly on their balance sheets. Instead, a prime brokerage under SC Ventures reduces regulatory friction. Hence, Standard Chartered can expand crypto services while limiting capital strain.
Additionally, this structure aligns with global compliance expectations. It allows the bank to serve institutions without increasing systemic risk. As a result, regulators may view the model more favorably.
Crypto Prime Brokerage Gains Strategic Importance
Crypto prime brokerage has become a strategic focus across the financial sector. Large investors want unified platforms for liquidity, leverage, and custody. Consequently, demand has increased alongside institutional capital inflows.
Recent acquisitions highlight this trend. Ripple acquired prime broker Hidden Road for $1.25 billion. Similarly, FalconX purchased ETF issuer 21Shares. These deals show strong competition for institutional crypto infrastructure.
Therefore, Standard Chartered’s interest fits a wider industry pattern. Banks now see infrastructure services as safer entry points than direct trading. This approach supports long-term involvement without excessive exposure.
Standard Chartered Deepens Crypto Footprint
The bank already maintains a presence in digital assets. It supports institutional platforms such as Zodia Custody and Zodia Markets. Furthermore, it became one of the largest banks to offer spot crypto trading in July.
Standard Chartered has also released optimistic crypto market forecasts. These projections reflect rising institutional confidence in digital assets. Meanwhile, competition among major banks continues to increase.
In addition, regulated crypto investment products keep expanding in the United States. Crypto exchange-traded funds now hold more than $140 billion in combined assets. This growth reinforces institutional interest in secure crypto access.