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SC Ventures cues up $100M crypto startup investment vehicle in UAESC Ventures, the Singapore-headquartered fintech investment arm of British financial services giant Standard Chartered, is set to forge a “Digital Asset Joint Venture” investment company in the United Arab Emirates (UAE) in collaboration with Japanese financial giant SBI Holdings.Photo by ZQ Lee on UnsplashBroad spectrum of crypto sector investmentThe CEO of SC Ventures, Alex Manson, outlined the joint venture’s strategic objectives in a press release published from Dubai on Thursday. Manson emphasized a focus on making strategic and minority investments in crucial areas such as market infrastructure, risk management, compliance tools, DeFi, tokenization, consumer payments and the metaverse.SBI Holdings has been collaborating quite a bit with Standard Chartered when it comes to the digital assets space over the course of the past year. It has invested in Standard Chartered subsidiary company Zodia Custody, a digital assets custodian. Subsequently, Zodia Custody has gone on to launch its services in Dubai, and in September, the company launched its services in Singapore.Meanwhile, SBI is similarly invested in Standard Chartered subsidiary Zodia Markets, an exchange and brokerage platform which recently received approval to trade in the UAE as a broker-dealer. A report by Nikkei Asia last month outlined that Standard Chartered is very much making a concerted effort to muscle its way into the Asian crypto space.Speaking at RippleSwell, an event held in Dubai earlier this week organized by blockchain company Ripple Labs, Zodia Custody CEO Julian Sawyer stated:“Blockchain is the future, tokenization is the future. It’s a question of how we get there and what speed we do that.”Building out a regional hubThis recent partnership comes as the UAE works towards strengthening its position as a fintech hub, leveraging improved infrastructure and a local talent base. Despite its roots in the UAE, the joint venture aims to explore opportunities within the global digital asset ecosystem. Manson highlighted the commitment to broader exploration beyond the local market, indicating a global perspective in navigating emerging opportunities.This development follows Standard Chartered’s earlier memorandum of understanding with the Dubai International Financial Centre in May. This agreement granted the bank approval to extend digital asset custody services to institutional clients on a global scale.While deeply entrenched in the crypto custody business, Standard Chartered is also actively engaging with the digital economy’s broader facets. In June, the bank partnered with PricewaterhouseCoopers China to produce a white paper on applications for central bank digital currency in the Greater Bay Area of China, encompassing Guangdong province, Hong Kong and Macao.Both SBI and Standard Chartered are collaborating with the Monetary Authority of Singapore (MAS) in a project that seeks to build a comprehensive framework for the provision of interoperable and open networks for tokenized digital assets.This multifaceted approach positions Standard Chartered as a key player navigating the dynamic intersection of traditional finance and the evolving digital landscape. Market reaction to this recent development has been positive with one crypto sector participant stating:”Excited to see Standard Chartered expanding its services to accommodate the growing demand for crypto custody, especially in the UAE where the regulatory environment appears to be more favorable. This move could pave the way for increased institutional adoption of Bitcoin and Ethereum.”

HSBC and Ant Group advance blockchain-based tokenized deposit systemThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, and Ant Group, China’s leading financial conglomerate, have successfully conducted tests in a sandbox environment facilitated by the Hong Kong Monetary Authority (HKMA) to explore the potential of tokenized deposits.Photo by Robert Bye on UnsplashIssue, transfer and redemption of tokenized depositsAccording to Cointelegraph, the primary objective of this collaborative effort was to assess a system for issuing, transferring and redeeming tokenized deposits. The trial aimed to gauge the capacity of tokenized deposits to provide for greater efficiency, allowing for real-time treasury fund transfers for corporate accounts within the HSBC network to transpire seamlessly at any hour, 24/7.HSBC expressed its excitement regarding the results, stating that it will open avenues for future research on how blockchain technology and tokenization can drive efficiencies and innovations in corporate treasury management.The test harnessed a blockchain platform developed by Ant Group, leveraging the support of Ant Group’s banking partners. These partners played a pivotal role in enhancing the efficiency of treasury fund transfers by reducing turnaround times, increasing cost efficiency and improving overall visibility.Vincent Lau, Global Head of Emerging Payments and Global Payments Solutions at HSBC, emphasized the bank’s keen interest in integrating tokenized deposits and other financial innovations into its future strategy. This approach is designed to streamline and optimize treasury management services for its clients.Crypto and blockchain project involvementHSBC has maintained a proactive stance in exploring the potential of blockchain technology. The bank has participated in numerous initiatives related to central bank digital currencies (CBDCs), notably Project mBridge, a multi-CBDC platform developed by SWIFT. This initiative supports real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs.It emerged earlier this year that HSBC was collaborating with the HKMA on its e-HKD CBDC pilot program. Part of that project implicated the use of tokenization relative to real world assets (RWAs), an area that the real-time gross settlement platform Ripple was providing expertise on.In June, HSBC took a significant step by launching local cryptocurrency services in Hong Kong, which included support for trading Bitcoin and Ether exchange-traded funds (ETFs) listed on Hong Kong’s stock exchange. The supported products encompass the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.In the same month, the HKMA encouraged HSBC alongside Standard Chartered to provide banking service support to fledgling crypto businesses in Hong Kong, having identified an issue with the extension of banking services to the sector within the Chinese autonomous territory. Meanwhile, Ant Group has been central to the progression of blockchain technology within China.HSBC’s expansion into crypto-related services aligns with the growing interest in digital assets, occurring in the aftermath of the launch of retail crypto trading in Hong Kong on June 1.

Julius Baer Expands Crypto Wealth Management Services in DubaiJulius Baer, a renowned Swiss private bank, is making strides in the world of digital assets with the expansion of its crypto wealth management services in Dubai.This move, reported by Bloomberg on Wednesday, represents the bank’s first major crypto product offering overseas. The Middle Eastern subsidiary of Julius Baer, JBME, has announced its intention to apply for a “digital assets license variation” to complement its existing permissions granted by the Dubai Financial Services Authority.If successful, this license variation will empower the company to offer advisory and custodial services for digital assets like Bitcoin, Ether, and other cryptocurrencies.Photo by Sascha Bosshard on UnsplashUAE “key geography”Jonathan Hayes, the head of digital assets development at Julius Baer, has underscored the United Arab Emirates (UAE) as a “key geography” for the bank’s expansion. He points to the region’s substantial economic development as a catalyst for venturing into the Dubai market.Julius Baer has already made strides in the crypto space within Switzerland by offering lending services to select crypto clients. This pioneering service allows customers to leverage their digital assets held by the bank. However, it is currently limited to clients with diversified portfolios that include traditional assets.Attracting international interestThe UAE, along with other individual Emirates in the country, has been actively striving to attract crypto businesses. As US authorities tighten regulations, numerous companies are seeking more crypto-friendly environments to operate in. It started to accept crypto business license applications in April. US crypto exchange Coinbase indicated its interest in locating a base there the following month.In Dubai, prominent cryptocurrency exchanges such as Binance Holdings Ltd., OKX, and Crypto.com have all submitted license applications to the Virtual Assets Regulatory Authority. Binance was among one of the first to secure a license while its understood that it may be looking towards the UAE as a strategic base for the company going forward. Meanwhile, another US crypto platform, Gemini, has suggested that it will now work towards obtaining a crypto license in the UAE.Julius Baer has witnessed a broad demand from affluent individual clients ranging in age from 25 to 70, according to Lucia Desmarquest, the Deputy Head of the bank’s central and eastern European division.Having first launched its crypto services in May of the preceding year, Julius Baer currently provides standard advice on digital assets to investors domiciled across 25 countries, including Luxembourg and Singapore.The bank’s wealth management services cover approximately the top 15 cryptocurrencies in the market. Each token undergoes meticulous due diligence and is subject to review by a dedicated panel.This expansion aligns with the broader trend of TradFi firms exploring opportunities in the digital assets space, as the industry continues to evolve and gain traction globally. Julius Baer’s expertise and established reputation position it well to navigate the evolving landscape of crypto wealth management and cater to the needs of its savvy clientele.