Standard Chartered and SBI Holdings Collaborate on $100 Million Crypto Investment Venture

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Brian Yue

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November 8, 2023

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SBI Holdings and Standard Chartered’s investment arm, SC Ventures, have joined forces to set up a $100 million joint venture in the United Arab Emirates targeting crypto startups.

In a statement released on Thursday, the two companies announced the launch of their Digital Asset Joint Venture. The Venture will focus on investing in companies across the digital assets spectrum including market infrastructure, risk and compliance tools, DeFi, tokenization, consumer payments, and the Metaverse.

The companies also said that they would make investments ranging from seed to Series C funding.

Although the Venture aims to invest globally, SC Ventures’ CEO Alex Manson praised the UAE for its rapid development as a hub for fintechs.

“The region is fast becoming a hub for fintechs in the digital asset space due to its strengthening infrastructure and talent,” said Alex Manson, CEO of SC Ventures, adding that the Venture would be an “important vehicle” to examine evolving opportunities in the global digital asset ecosystem.

“The Joint Venture will leverage SC Ventures’ experience in digital assets through our ventures such as Zodia Custody and Zodia Markets, and through our investments in fintechs like Ripple and Metaco,” he concluded.

SC Ventures exited its stake in Metaco back in May after Ripple acquired it for $250 million.

This isn’t the first time SC Ventures has collaborated with SBI Holdings. The two companies have previously invested in the same startups, including Solv, Zodia Custody, and myZoi.

Japanese financial conglomerate SBI Holdings is set to launch another crypto fund by the year’s end, aiming to invest up to 100 billion yen ($663 million) in web3, AI, and fintech startups, as reported by Nikkei today. Leading Japanese financial institutions such as Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group have reportedly committed to investing over 50 billion yen in the fund.

Standard Chartered has previously said that the detailed regulatory framework in the UAE is a major force in driving firms to set up operations there. In September, Zodia Markets, a digital asset marketplace primarily owned by Standard Chartered and supported by SBI Holdings, secured in-principle approval to function as a crypto broker-dealer in Abu Dhabi.