Under the title [SBI Holdings and Standard Chartered Join Forces in $100M UAE Crypto Venture], it has been announced that SBI Holdings and Standard Chartered’s investment arm, SC Ventures, have come together in a joint venture worth $100 million. The primary focus of this venture will be on investing in crypto startups within the United Arab Emirates.
Both companies released a statement on Thursday declaring the establishment of their Digital Asset Joint Venture. This collaboration aims to invest across various aspects of the digital assets field, including market infrastructure, risk and compliance tools, DeFi, tokenization, consumer payments, and the highly popular Metaverse.
To cater to the diverse needs of startups, the two companies plan to make investments ranging from seed to Series C funding. Although they intend to invest globally, SC Ventures’ CEO Alex Manson expressed admiration for the UAE’s evolving fintech ecosystem and highlighted its potential as a digital asset hub.
Manson stated, The region is fast becoming a hub for fintechs in the digital asset space due to its strengthening infrastructure and talent. He further emphasized that this joint venture would provide a vital platform for exploring emerging opportunities within the global digital asset ecosystem. SC Ventures will leverage its experience in digital assets through ventures such as Zodia Custody, Zodia Markets, and previous investments in fintech companies like Ripple and Metaco.
It’s worth noting that SC Ventures has already collaborated with SBI Holdings on multiple occasions, including joint investments in Solv, Zodia Custody, and myZoi. This partnership has been fruitful in the past, leading to further cooperation on this major venture.
SBI Holdings, a Japanese financial conglomerate, is also poised to launch another crypto fund by the end of this year. With an investment target of up to 100 billion yen ($663 million), this fund aims to support web3, AI, and fintech startups. Notably, leading Japanese financial institutions like Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group have already committed to investing over 50 billion yen in this fund.
Standard Chartered has previously highlighted the UAE’s comprehensive regulatory framework as a driving force behind firms setting up operations there. In September, Zodia Markets, a digital asset marketplace primarily owned by Standard Chartered and supported by SBI Holdings, obtained in-principle approval to function as a crypto broker-dealer in Abu Dhabi.
This collaboration between SBI Holdings and Standard Chartered, along with their investment in the UAE’s crypto ecosystem, showcases the growing interest and investment in digital assets worldwide. The joint venture’s strong financial backing and support from renowned financial institutions position it as a key player in fostering innovation and growth within the digital asset industry.
