Standard Chartered Bank's Deployment in Cryptocurrency Prime Brokerage: The Strategic Significance and Market Impact of a Traditional Financial Giant

The cryptocurrency prime brokerage business will become a key bridge connecting traditional banks with institutional investors. Currently, Bitcoin is priced at $95,459.4, up 4.51% in the past 24 hours, and Ethereum is priced at $3,336.54, with a 7.54% increase.

What is Cryptocurrency Prime Brokerage

Prime brokers act as the “trading hub” for institutional investors in traditional finance—offering a suite of services including financing, trade execution, clearing, and settlement. Standard Chartered plans to introduce this mature business model into the crypto space, establishing a comprehensive trading ecosystem for institutional investors.

The core of Standard Chartered’s plan is to create a full-process channel for institutional investors to access the crypto market. Unlike traditional single-trade services, prime brokerage integrates custody, financing, and market access services, forming a one-stop solution.

Standard Chartered’s Strategic Layout

Standard Chartered’s crypto strategy shows a clear evolutionary path. From investing in crypto custody provider Zodia Custody in 2023, to establishing the institutional trading platform Zodia Markets, and by July 2025 becoming the first global systemically important bank to offer spot cryptocurrency trading to institutional clients.

In December last year, Standard Chartered’s venture capital arm SC Ventures revealed Project37C, positioning it as a “lightweight financing and market platform.” This project now appears more like a prototype of prime brokerage. Notably, Standard Chartered has placed this new business under SC Ventures rather than within its core banking system. This structural design is meaningful—Basel III frameworks impose up to 1250% capital requirements on unlicensed crypto assets, while venture capital exposures face lower capital requirements.

Accelerators for Institutionalization

Market structure is shifting from a “halving cycle” dominance to a “institutional paradigm” driven structural adjustment. With US spot crypto ETF assets reaching $140 billion, institutional demand for crypto assets is significantly increasing. Competition among traditional financial institutions in the crypto space is intensifying. In the US, JPMorgan is reportedly exploring crypto trading services for institutional clients, while Morgan Stanley has applied to launch Bitcoin, Ethereum, and Solana ETFs.

The launch of prime brokerage not only lowers the participation threshold for institutional investors but also provides more stable liquidity support. 21Shares predicts that crypto ETF assets under management will exceed $400 billion by 2026.

Market Outlook and Key Observations

Standard Chartered’s choice to operate the new business through SC Ventures rather than its core banking system reflects a pragmatic strategy within the current regulatory framework. Changes in regulation, technological infrastructure development, and compliance processes will be critical factors in the success of this business.

Institutional demand for crypto market infrastructure is accelerating. The essence of prime brokerage is to treat crypto assets as equally important investment targets as traditional asset classes (such as stocks and bonds), providing corresponding trading infrastructure. The crypto market is undergoing structural changes—from an early stage dominated by retail sentiment and Bitcoin halving cycles to a new phase driven by institutional capital and professional infrastructure.

As Standard Chartered advances its crypto prime brokerage, the global banking industry’s strategic deployment in digital assets is shifting from scattered “pilot projects” to systematic business architectures. 21Shares forecasts that by the end of 2026, crypto ETF assets under management could surpass $400 billion. Galaxy Digital even predicts Bitcoin could reach $250,000 by the end of 2027. The ongoing entry of traditional financial institutions brings new liquidity and stability to the digital asset market, while also providing institutional investors with more comprehensive trading infrastructure.