Standard Chartered and SBI Holdings Set Up $100 Million Crypto Vehicle in UAE
SC Ventures, the investment arm of Standard Chartered bank, and SBI Holdings, the Japanese financial conglomerate, have formed a joint venture to establish a $100 million crypto vehicle in the United Arab Emirates. The new vehicle will focus on investing in various crypto areas such as decentralized finance, tokenization, infrastructure, payments, and the metaverse. The joint venture aims to invest globally, covering seed to Series C funding rounds.
Crypto Market Recovery
Amid signs of recovery in the crypto markets, with potentially bullish sentiment, Bitcoin is currently trading at about $36,800. This marks a year-to-date gain of over 120%. Additionally, spot crypto trading volume on centralized exchanges increased in October after four months of decline. These metrics may indicate renewed interest in crypto, possibly in anticipation of a spot bitcoin ETF approval early next year.
‘Strategic and Minority Investments’
Alex Manson, CEO of SC Ventures, stated that the joint venture plans to make “strategic and minority investments” in crypto startups. Manson also mentioned leveraging SC Ventures’ experience in digital assets through ventures such as Zodia Custody and Zodia Markets, as well as through investments in fintechs like Ripple and Metaco.
SC Ventures previously exited its stake in Metaco when Ripple acquired it for $250 million. SC Ventures and SBI Holdings have also invested in the same startups including Solv, Zodia Custody, and myZoi.
Additional Investments by SBI Holdings
In addition to the joint venture with SC Ventures, SBI Holdings is set to launch a separate fund by the end of this year to invest up to 100 billion yen ($663 million) in web3, AI, and fintech startups. This was reported by Nikkei today. Japanese financial giants Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group have reportedly committed to investing more than 50 billion yen in this fund.
Hot Take: Crypto Investment Opportunities Continue to Grow
The partnership between SC Ventures and SBI Holdings to establish a $100 million crypto vehicle reflects the increasing interest and investment opportunities within the crypto space. With a focus on areas such as decentralized finance and tokenization, this joint venture is poised to contribute to the ongoing growth and development of the global crypto market. Additionally, SBI Holdings’ plans for a separate fund further emphasize the expanding landscape for investments in web3, AI, and fintech startups.
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