Standard Chartered Explores Crypto Prime Brokerage

Standard Chartered, the London-based multinational bank, is in early discussions to launch a cryptocurrency prime brokerage service aimed at institutional clients, according to people familiar with the matter. The new unit would operate under SC Ventures, the bank's venture capital and innovation arm, rather than its core corporate and investment banking division, allowing the lender to expand in digital assets while navigating regulatory constraints.

The plans remain preliminary, with no firm timeline for a potential rollout. Sources who spoke on condition of anonymity, as the initiative is not yet public, indicated that the brokerage would provide essential services such as trading execution, financing, securities lending, and custody for cryptocurrencies. This structure could help Standard Chartered sidestep stringent capital requirements under Basel III rules, which impose a 1,250 percent risk charge on banks' direct holdings of permissionless assets like Bitcoin and Ether. By keeping the operation within SC Ventures, the bank may limit balance sheet exposure compared to integrating it into its main operations.

Standard Chartered has positioned itself as a leader among...