Standard Chartered’s Investment Arm, SBI Holdings to Set Up Digital Asset Joint Venture in the UAE

SC Ventures will collaborate with Japanese financial conglomerate SBI Holdings to establish a "Digital Asset Joint Venture" investment company in the United Arab Emirates (UAE). This partnership aims to capitalize on the growing potential of the digital asset ecosystem globally.

Objectives of the Joint Venture

Alex Manson, CEO of SC Ventures, the fintech investment arm of Standard Chartered, unveiled that the joint venture company will invest in market infrastructure, risk management, and compliance tools, decentralized finance (DeFi), tokenization, consumer payments, and the metaverse.

According to Cointelegraph, Manson emphasized that the decision to establish the joint venture in the UAE stems from its robust infrastructure and talented workforce, positioning the region as a prominent fintech hub. Furthermore, the joint venture aims to explore emerging digital asset opportunities internationally, expanding its reach beyond the local market, as per CoinDesk.

Diversifying Into the Digital Economy

In May 2023, SC Ventures signed a memorandum of understanding with the Dubai International Financial Centre, granting the bank approval to offer digital asset custody services to its institutional clients worldwide. This strategic collaboration solidifies Standard Chartered's commitment to the digital asset industry.

Last month, Standard Chartered and SBI Holdings jointly launched Zodia, an institutional cryptocurrency custody platform, in Hong Kong. Established in 2021, Zodia supports 38 cryptocurrencies and has recently expanded its services to Japan, Singapore, and Australia.

In addition to its involvement in the cryptocurrency custody business, Standard Chartered has demonstrated its interest in the digital economy. The bank partnered with PricewaterhouseCoopers China to publish a white paper on the applications of central bank digital currency in the Greater Bay Area of China, covering Guangdong province, Hong Kong, and Macao.

The establishment of a joint venture between SC Ventures and SBI Holdings signifies a pivotal moment in the development of the digital asset industry. With its strategic investments and global outlook, this joint venture aims to play a leading role in shaping the future of finance.

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