SC Ventures and SBI Holdings Establishing $100M Investment Firm for Crypto Startups in UAE

SC Ventures and SBI Holdings Establishing $100M Investment Firm for Crypto Startups in UAE

In exciting news for the crypto community, SC Ventures and SBI Holdings have joined forces to establish a $100 million investment firm in the United Arab Emirates (UAE) that will target crypto startups. This collaboration, known as SC Ventures and SBI Holdings’ Digital Asset Joint Venture investment company, will focus on supporting firms in market infrastructure, risk and compliance, decentralized finance (DeFi), and tokenization. Building on their previous successes, including Zodia Markets, which received approval to act as a crypto broker-dealer in Abu Dhabi, this venture highlights the growing interest in the UAE as a hub for blockchain and cryptocurrency innovation.

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Overview

In partnership with Japanese financial services firm SBI Holdings, SC Ventures, the venture arm of Standard Chartered, is establishing a $100 million investment company that will focus on crypto startups. This investment company, called SC Ventures and SBI Holdings’ Digital Asset Joint Venture, will be based in the United Arab Emirates (UAE). The company’s main focus will be on firms in market infrastructure, risk and compliance, decentralized finance (DeFi), and tokenization.

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Background

Standard Chartered has recently shifted its focus towards the UAE when it comes to its crypto activities. The bank has chosen Dubai as the jurisdiction in which it will begin safeguarding digital assets for institutional clients in the first quarter of 2024. One of the key reasons behind this decision is the UAE’s mature regulatory structure, which is more favorable compared to other jurisdictions.

Formation of Investment Company

The partnership between SC Ventures and SBI Holdings aims to establish an investment company with a $100 million fund. This investment company will primarily target crypto startups that operate in the UAE. The collaboration brings together the expertise and resources of both companies, allowing them to make strategic investments in the crypto space.

Location and Focus

The investment company will be based in the UAE, specifically in Dubai. The choice of location is driven by the UAE’s attractive regulatory environment and its position as a global financial hub. The company will focus on investing in crypto startups that operate in market infrastructure, risk and compliance, DeFi, and tokenization. These sectors are seen as key drivers of innovation and growth in the crypto industry.

Standard Chartered’s Crypto Activities in the UAE

Standard Chartered has been actively expanding its crypto activities in the UAE. The decision to establish a presence in Dubai for safeguarding digital assets is part of the bank’s broader strategy to tap into the growing demand for crypto-related services. By providing institutional clients with a secure platform to store and manage their digital assets, Standard Chartered aims to position itself as a trusted partner in the crypto space.

Zodia Markets Approval

Zodia Markets, a digital asset marketplace majority owned by Standard Chartered and backed by SBI Holdings, has received in-principle approval to act as a crypto broker-dealer in Abu Dhabi. This approval is a significant milestone for Zodia Markets and allows the company to operate in the UAE’s regulated crypto market. With this approval, Zodia Markets can provide its clients with a wide range of crypto services, including trading and custody.

Impact of Regulatory Structure

The UAE’s mature regulatory structure has played a crucial role in attracting companies like Standard Chartered and SBI Holdings to establish operations in the country. The clear and favorable regulatory framework provides a stable and predictable environment for businesses operating in the crypto industry. This regulatory clarity not only benefits companies but also instills confidence in investors and clients, contributing to the growth and development of the overall crypto ecosystem in the UAE.

Disclosure

Please note that the information provided in this article is for informational purposes only and should not be considered as financial or investment advice. The article is based on publicly available information and the opinions of the author. It is recommended to seek professional advice before making any investment decisions.

Conclusion

The partnership between SC Ventures and SBI Holdings to establish a $100 million investment company in the UAE demonstrates the growing interest and confidence in the crypto industry. The UAE’s favorable regulatory structure and its position as a global financial hub make it an attractive location for companies looking to invest in the crypto space. With its focus on market infrastructure, risk and compliance, DeFi, and tokenization, the investment company aims to support and drive innovation in these key areas of the crypto industry.

About the Author

Jamie Crawley is a news reporter based in London. With a background in finance and a keen interest in blockchain technology, Jamie covers the latest developments in the crypto industry. His articles provide insights into the latest trends, regulatory changes, and investment opportunities in the crypto space. Follow him on Twitter at @JamieCrawleyCD for the latest updates in the world of cryptocurrency.

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