SC Ventures and SBI Holdings launch $100 million crypto plan in the UAE

The new company will focus on companies in areas such as DeFi, market infrastructure, and tokenization.

SC Ventures, the investment arm of Standard Chartered Bank, and SBI Holdings, the Japanese financial group, have teamed up to build a $100 million cryptocurrency program in the United Arab Emirates.

Dubbed the “Digital Asset Joint Venture,” the new institution will focus on companies involved in market infrastructure, risk and compliance, decentralized finance (DeFi), and tokenization.

Digital Asset Joint Venture

According to the official press release, the digital asset joint venture plans to allocate funds across various investment stages, from seed to Series C financing, with a focus on global investment opportunities.

Alex Manson, CEP of SC Ventures, said the new tool is also expected to leverage SC Ventures’ experience in digital assets by investing in fintech companies such as Ripple and Metaco.

The executive also added that the digital asset joint venture plans to make strategic and minority investments in areas such as market infrastructure, risk management and compliance tools, DeFi, tokenization, consumer payments, and the Metaverse. This is one of several strategic initiatives that we will continue to invest in and expand our footprint in the region and across the digital asset ecosystem.

Yoshitaka Kitao, SBI Holdings, Inc. Representative Director, Chairman, President and Chief Executive Officer, confirmed the progress,

"We are pleased to announce our partnership with SC Ventures to establish a digital asset joint venture in the UAE and leverage the collective capabilities of our two organizations in the digital asset space. This move further strengthens the strategic relationship between SBI Holdings and SC Ventures, following our investments in SC Ventures’ portfolio companies, including Solv, Zodia Custody and myZoi. ”

Standard Chartered’s inclination towards the UAE

As U.S. regulators grapple with the complexities of cryptocurrency regulation, major global banks have slowly prepared for the digital asset economy in more mature jurisdictions.

Standard Chartered, for example, chose Dubai as its focus, with the goal of starting to protect its cryptocurrencies such as Bitcoin and Ethereum for institutional clients by the first quarter of 2024. Successful adoption of institutions requires the establishment of a variety of important components.

In line with its long-term goals, the British multinational bank signed a memorandum of understanding with the Dubai International Financial Centre in May to collaborate within the industry, with a particular focus on digital asset custody. During the same period, SC Ventures divested its ownership of Metaco in Switzerland.

Ripple, part of SC Ventures’ portfolio, acquired the tech company for $250 million.