A major traditional bank is reshaping its institutional crypto playbook. Standard Chartered is rolling out a dedicated crypto prime brokerage unit through its venture arm SC Ventures, targeting institutional players with an integrated package—custody infrastructure, leverage financing, and trading execution bundled together.
What makes this move interesting isn't just the service stack. The bank structured this through its VC division specifically to sidestep Basel III's punitive 1,250% capital charge treatment that applies to crypto holdings. By routing the business through the venture arm rather than the main banking entity, Standard Chartered essentially engineered a regulatory workaround that keeps balance sheet impact minimal while scaling crypto exposure.
This signals how traditional finance is getting surgical about market entry—not just offering services, but designing the entire infrastructure to optimize against regulatory friction. For institutions seeking compliant, full-stack crypto prime brokerage capabilities, this represents another credibility signal that legacy banking infrastructure is cementing its place in the digital asset ecosystem.
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SerRugResistant
· 14h ago
NGL Standard Chartered's move is quite clever, directly using a VC shell to bypass the 1250% capital requirement, really a case of one hand washing the other... But to be honest, this is just an old trick of traditional finance engaging in mixed operations.
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CodeZeroBasis
· 01-14 20:54
Haha, it's the same old trick of exploiting legal loopholes. That's how financial institutions operate, huh?
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GasFeeCrybaby
· 01-12 17:58
Ha, it's the same old trick again, dodging regulations through VC shells... Clever is clever, but how long can this play last?
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ImpermanentPhobia
· 01-12 17:58
The gameplay has been revamped, and traditional finance is starting to get competitive.
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GasFeeLady
· 01-12 17:58
lol so they just... restructured the whole thing to avoid Basel III gas fees basically? that's some next-level MEV protection but for regulatory compliance tbh. the timing on this is chef's kiss—institutions have been waiting for the optimal window and SC just found it. not mad at the move, actually respect the architecture here, feels like watching someone frontrun the entire regulatory machine
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AlwaysMissingTops
· 01-12 17:56
This set of operations is truly brilliant, using VC shells to circumvent Basel III's ultimate weapon, and the roundabout ways of traditional finance are also exceptional...
A major traditional bank is reshaping its institutional crypto playbook. Standard Chartered is rolling out a dedicated crypto prime brokerage unit through its venture arm SC Ventures, targeting institutional players with an integrated package—custody infrastructure, leverage financing, and trading execution bundled together.
What makes this move interesting isn't just the service stack. The bank structured this through its VC division specifically to sidestep Basel III's punitive 1,250% capital charge treatment that applies to crypto holdings. By routing the business through the venture arm rather than the main banking entity, Standard Chartered essentially engineered a regulatory workaround that keeps balance sheet impact minimal while scaling crypto exposure.
This signals how traditional finance is getting surgical about market entry—not just offering services, but designing the entire infrastructure to optimize against regulatory friction. For institutions seeking compliant, full-stack crypto prime brokerage capabilities, this represents another credibility signal that legacy banking infrastructure is cementing its place in the digital asset ecosystem.