Standard Chartered Bets on Ethereum’s Next Cycle | US Crypto News
Standard Chartered is reportedly launching a crypto prime brokerage under SC Ventures to navigate Basel III capital rules and focus on institutional Ethereum adoption.Summary
Standard Chartered is reportedly planning to establish a crypto prime brokerage service, which will include financing, custody, and trading for institutional clients. Crucially, this unit is expected to operate under its venture arm, SC Ventures, rather than the core corporate and investment banking division. This structural decision appears designed to circumvent the punitive 1,250% risk weighting imposed on assets like Bitcoin and Ether under Basel III rules for permissionless crypto, as venture capital investments carry a lower capital charge. This move aligns with the bank's existing crypto involvement, including backing Zodia Custody and Zodia Markets. Furthermore, Standard Chartered's research, led by Geoff Kendrick, strongly favors Ethereum's next cycle, projecting it could reach $40,000 by 2030, citing factors like stablecoin dominance, DeFi growth, and potential regulatory clarity from the US CLARITY Act. The bank's strategy suggests a template for how global banks can engage with crypto infrastructure without waiting for regulatory reform.
(Source：BeInCrypto)