Traditional banks enter the prime broker business, intensifying the battle for dominance in institutional cryptocurrency trading

GasFeeCrying · 2026-01-13T09:04:07+00:00

Standard Chartered is gaining attention for plans to launch a prime brokerage service for institutional investors through its subsidiary SC Ventures. This strategy aims to mitigate regulatory burdens linked to stringent Basel III capital requirements on unregulated assets like Bitcoin and Ethereum. Expanding its digital asset approach, the bank supports Zodia Custody and Zodia Markets while aiming to enhance its services for institutional traders.

GasFeeCrying

2026-01-13 09:04:07

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Standard Chartered’s moves are attracting industry attention. The bank has reportedly considered launching a crypto asset prime broker service for institutional investors through its wholly owned subsidiary, SC Ventures, according to Bloomberg.

Aiming to Avoid Regulatory Requirements

The strategic development is driven by the strict capital requirements of Basel III. Under the current framework, unapproved assets like Bitcoin and Ethereum are assigned a 1250% risk weight, and the prime broker business via subsidiaries is expected to reduce regulatory burdens.

Comprehensive Expansion in the Digital Asset Sector

Standard Chartered is diversifying its approach to the crypto asset market. It has already strengthened support for Zodia Custody and Zodia Markets, and last year established its position as a globally systemically important bank in spot crypto trading for institutional investors.

The addition of a prime broker business clearly aims to extend into leveraged trading and portfolio management services for institutional traders. Although still in early-stage discussions, this could be a significant step toward strengthening the bank’s presence in the crypto asset space.

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