Standard Chartered and SBI Holdings to Establish $100 Million Crypto Initiative in UAE
SC Ventures, the investment division of Standard Chartered Bank, and SBI Holdings, the Japanese financial conglomerate, have partnered to create a $100 million cryptocurrency initiative in the United Arab Emirates. The new venture, known as Digital Asset Joint Venture, will target companies involved in market infrastructure, risk and compliance, DeFi, and tokenization.
The Digital Asset Joint Venture
The Digital Asset Joint Venture aims to allocate funds across various investment stages, from seed to Series C funding, with a focus on global investment opportunities. Leveraging SC Ventures’ experience in digital assets through investments in fintech firms like Ripple and Metaco, the new vehicle plans to make strategic and minority investments in market infrastructure, risk management and compliance tools, DeFi, tokenization, consumer payments, and the Metaverse.
Yoshitaka Kitao, SBI Holdings’ Representative Director, Chairman, President and CEO expressed excitement about the partnership to establish a Digital Asset Joint Venture in UAE with SC Ventures. He emphasized that this initiative strengthens the strategic relationship between SBI Holdings and SC Ventures following their investment forays into SC Ventures’ portfolio companies including Solv, Zodia Custody, and myZoi.
Standard Chartered’s UAE Inclinations
As US regulators navigate cryptocurrency regulations complexities, major global banks have started gearing up for the digital asset economy in more established jurisdictions. Standard Chartered has chosen Dubai as its focal point to begin safeguarding its cryptocurrencies like Bitcoin and Ethereum for institutional clients by the first quarter of 2024. The successful adoption by institutions necessitates the establishment of various essential components.
In alignment with its long-term goals, Standard Chartered entered into a memorandum of understanding with the Dubai International Financial Centre to work together in the industry with a particular focus on digital asset custody. During that period, SC Ventures divested its ownership in Swiss-based Metaco. Ripple also acquired the tech firm for $250 million.
Hot Take: A Step Forward for Cryptocurrency Investment in UAE
The collaboration between SC Ventures and SBI Holdings marks a significant move towards promoting cryptocurrency investment in the UAE. With a substantial fund allocation and strategic partnerships with global banks like Standard Chartered, this initiative is poised to accelerate the development of digital asset infrastructure in the region. As regulatory frameworks continue to evolve globally, such ventures are crucial for establishing robust market infrastructure and fostering innovation within the digital assets ecosystem.
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