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SC Ventures, Standard Chartered's venture capital arm, has launched a $250 million blockchain and cryptocurrency fund. The move is a strategic step in growing the bank's presence in the fintech industry and enhancing its worldwide digital asset presence.
The fund will also target startups at the early and growth stages, with emphasis on decentralized finance (DeFi), tokenization, and digital infrastructure. SC Ventures' mission is to market projects that will lead to the adoption of blockchain-based financial solutions and concentrate on innovation.
It is also the initial fund that SC Ventures has invested in digital assets, although the company has previously invested in other fintech corporations. The ruling puts Standard Chartered in the same position as the other global banks that have recently started offering more crypto-related provision services.
Some of the institutions that have implemented blockchain projects include JPMorgan, Goldman Sachs, and UBS, which demonstrates a growing acceptance of cryptocurrency in the mainstream financial sector.
According to industry analysts, institutional players have been drawn to the industry by increasing liquidity, evolving regulations, and well-developed infrastructure. Standard Chartered's current team of investment personnel will manage the funding shared through Standard Chartered, which has a proven track record of scaling technology startups across various markets.
Cross-border payments, smart contracts, and asset tokenization are among the areas that have attracted the bank's interest in long-term growth. SC Ventures will employ Standard Chartered's global banking and market infrastructure business units and develop integrated service platforms in its portfolio firms.
SC Ventures has not disclosed a particular geographic focus, but it has long served Asia, Europe, and the Americas. The fund can also offer co-investment opportunities with institutional partners, which can expand its capital base and scope of operations.
Standard Chartered has made it clear that the project is a long-term investment in blockchain innovation. The bank also emphasized that it takes regulatory compliance and risk management seriously, which is in line with the industry, which has become wary of the market following recent market volatility.
Also Read: JPMorgan and Coinbase Team Up to Bring Crypto Purchases to Chase Cardholders
