Standard Chartered and SBI Holdings to Establish Digital Asset Joint Venture in UAE
SC Ventures, the fintech investment arm of British bank Standard Chartered, is teaming up with Japanese financial conglomerate SBI Holdings to create a “Digital Asset Joint Venture” investment company in the United Arab Emirates. According to a press release from Nov. 9, the CEO of SC Ventures, Alex Manson, outlined the new joint venture company’s objectives, which include making strategic and minority investments in various areas such as market infrastructure, risk management and compliance tools, DeFi, tokenization, consumer payments, and the metaverse.
Manson emphasized the region’s growing role as a fintech hub due to its improving infrastructure and talent pool. However, he also noted that the joint venture will not be limited to the regional market but will explore opportunities in the emerging global digital asset ecosystem.
Expanding Presence and Services
In May 2023, Standard Chartered signed a memorandum of understanding with the Dubai International Financial Centre, allowing the bank to offer digital asset custody services for its institutional clients worldwide. Additionally, a joint venture between Standard Chartered and SBI Holdings called Zodia recently launched its institutional cryptocurrency custody platform in Hong Kong. The platform supports 38 cryptocurrencies and has expanded its services to Japan, Singapore, and Australia.
While deeply involved in the crypto custody business, Standard Chartered has also focused on other aspects of the digital economy. In June, the bank collaborated with PricewaterhouseCoopers China to produce a white paper on applications for central bank digital currency in China’s Greater Bay Area (including Guangdong province, Hong Kong, and Macao).
Hot Take
Standard Chartered’s partnership with SBI Holdings to establish a digital asset joint venture in the UAE signals their commitment to expanding their presence and services in the rapidly evolving digital economy. By focusing on strategic investments and exploring global opportunities in the digital asset ecosystem, this joint venture aims to capitalize on the growing fintech potential of the region while also venturing into new markets worldwide.
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