SC Ventures, the investment arm of Standard Chartered, and SBI Holdings have revealed their intentions to establish a $100 million cryptocurrency enterprise, described as a “Digital Asset Joint Venture investment company,” in the United Arab Emirates (UAE). The collaboration is set to focus on investments in areas such as DeFi, tokenization, consumer payments, and the Metaverse. The announcement highlights that Standard Chartered had previously signed a Memorandum of Understanding (MoU) with the Dubai International Financial Centre in May, aiming for cooperative efforts in the digital asset realm, including digital asset custody.
Additionally, during the same month, the bank’s investment arm divested its stake in Metaco, a Ripple-owned crypto firm. Metaco has since partnered with HSBC to provide storage solutions for the bank’s upcoming custody services. The recent move by Standard Chartered and SBI Holdings signifies another significant stride in advancing the cryptocurrency industry in the UAE.
According to Yoshitaka Kitao, CEO of SBI Holdings, ‘We are thrilled to announce our partnership to establish a Digital Asset Joint Venture in UAE together with SC Ventures and bring to bear the collective capabilities of both our organizations in the digital asset space.’
Crypto Power Play: Assessing the UAE’s Claim to Global Hub Status
The UAE has swiftly emerged as one of the most rapidly growing centers for cryptocurrencies globally. Its clearly outlined rules and regulations have attracted major players in the digital asset industry. Alex Manson, CEO of SC Ventures, highlighted the region’s status as a fintech hub in the digital asset sector, attributing it to the robust infrastructure and talent pool.
Manson expressed the firm’s intention to extend its presence in the region, emphasizing that such expansion is part of several strategic initiatives aimed at continuous investment and growth within the digital assets ecosystem.