Standard Chartered Hong Kong in January "Three Arrows Launch," paving the way for stablecoin adoption?

Standard Chartered Bank in January focused intensively on three major areas in Hong Kong: preparing its prime brokerage services through SC Ventures, launching retail crypto trading with Mox Bank’s No. 1 license (allowing 750,000 customers to buy and sell BTC and ETH), and promoting DeCard credit cards for stablecoin payments in Singapore. This creates a full-chain layout of “institutional + retail + payments,” paving the way for stablecoin adoption.

Three Arrows Launch to Build a Complete Crypto Business Ecosystem

By January 2026, Standard Chartered has been active in Hong Kong’s crypto asset sector, from preparing institutional prime brokerage services to deploying retail crypto trading and cross-border stablecoin payment collaborations, forming a comprehensive, multi-scenario crypto business layout. These measures not only demonstrate the bank’s strategic commitment to digital assets but also align closely with Hong Kong’s goal of establishing an international digital asset financial hub.

On January 12, Bloomberg reported that Standard Chartered is preparing to launch a cryptocurrency prime brokerage service, which will be managed under SC Ventures, the group’s wholly owned venture capital arm, rather than on the bank’s core balance sheet. The service targets institutional clients such as hedge funds and family offices, offering custody, financing, clearing, trading execution, and risk management solutions, initially not available to retail users.

This risk-isolation structure addresses regulatory concerns. According to the Basel III final rules, if cryptocurrencies like Bitcoin and Ethereum are included in the bank’s core assets, they will be assigned a 1250% risk weight, requiring higher capital reserves. By placing the crypto prime brokerage under SC Ventures, Standard Chartered effectively isolates the bank’s core assets from crypto risks, enabling innovative breakthroughs within regulatory compliance.

On January 26, Standard Chartered-supported Hong Kong virtual bank Mox Bank announced it received an upgrade to license No. 1 from the Hong Kong Securities and Futures Commission, officially launching cryptocurrency trading services, becoming Hong Kong’s second digital bank to offer such services (after ZA Bank). The service is available via the Mox Invest platform, initially offering trading of Bitcoin and Ethereum denominated in USD.

Core Features of Mox Bank’s Crypto Service

Partnership Model: Trading matched with CEX, with custody provided

Fee Structure: Basic membership 1.25%, Elite membership 0.5%, tiered pricing

Customer Base: About 750,000 customers, covering approximately 12% of Hong Kong’s open account population

Functionality Limitations: No deposit or withdrawal of crypto assets; trading only within the platform

On January 28, Standard Chartered announced a joint launch of DeCard credit cards with DCS Card Center, supporting daily payments with Singapore stablecoins. In this collaboration, Standard Chartered provides virtual account services and API interfaces, enabling real-time payment transaction recognition and verification through technological empowerment. This Singapore market deployment is not an isolated pilot but part of a synergy with Hong Kong’s crypto business. The bank plans to expand this stablecoin payment model to other regions in the future.

Strategic Ambition to Capture Institutional Blue Ocean Market

The CEO of Standard Chartered previously stated publicly, “All transactions will eventually be settled via blockchain, and all currencies will be digitized,” which has become the core guiding principle of the group’s crypto strategy. Data shows that among high-net-worth clients in Hong Kong with assets exceeding HKD 1 million, 30% already hold digital assets, and 78% plan to participate in investments within the next 12 months, generally preferring to do so through compliant financial institutions.

The deployment of crypto prime brokerage and institutional custody services directly targets this demand, aiming to leverage the bank’s regulatory credibility and operational capacity to capture the flow of institutional crypto funds. Previously, institutional investors participating in crypto markets often relied on fragmented solutions involving offshore exchanges and shadow banking, facing high compliance risks, scattered services, and asset security concerns. Standard Chartered’s crypto prime brokerage offers an integrated “fiat on-ramp - trading - settlement - custody” solution, relying on bank-level compliance systems and custody technology to remove entry barriers for institutional clients.

This initiative is not isolated but connects with SC Ventures’ “Project 37C,” announced in December 2025, a lightweight platform covering custody, tokenization, and market access functions, aiming to launch in early 2026 and pilot in early 2027. Infrastructure-wise, this business will deeply integrate existing crypto ecosystem resources of Standard Chartered, leveraging Zodia Custody (institutional-grade digital asset custody platform) and Zodia Markets (institutional crypto trading venue) to build a closed-loop service system.

Combining previous disclosures, Standard Chartered’s crypto business in Hong Kong this month also includes digital asset custody services, following deployments in Luxembourg and the UAE. In January, the bank officially launched Bitcoin and Ethereum custody services in Hong Kong, becoming the first global systemically important bank to offer mainstream crypto custody services locally.

Stablecoin Payment as a Core Ecosystem Strategy

Standard Chartered’s stablecoin payment collaboration in Singapore complements its Hong Kong crypto business, revealing its core strategic intent: to facilitate the large-scale adoption of stablecoins. As a key bridge between the crypto market and traditional finance, stablecoins will expand into scenarios such as cross-border e-commerce in the Greater Bay Area and supply chain finance under Standard Chartered’s promotion. Using virtual accounts and API interfaces, the bank can provide enterprise-level stablecoin transaction reconciliation and real-time cross-border settlement services.

Traditional cross-border remittances involve multiple intermediaries, taking days and incurring fees of 5% to 10% of the transfer amount. Stablecoin payments, by contrast, offer instant settlement and lower costs. The Singapore pilot leverages technology to enable real-time transaction verification, accumulating experience for future applications in cross-border trade and e-commerce.

The Hong Kong SAR government is actively promoting initiatives such as the “Digital Hong Kong Dollar” pilot program, tokenized asset trials, and cross-border blockchain cooperation, aiming to establish a global digital asset hub. Standard Chartered’s deployment aligns precisely with these policy benefits. It is expected that Hong Kong will gradually introduce compliant stablecoin issuance and circulation rules, attracting companies like Ant Group and JD.com to participate in stablecoin issuance, promoting their adoption in retail payments, cross-border trade, and supply chain finance.

Standard Chartered’s global network can facilitate the replication and expansion of stablecoin payment models across Asia, Europe, and the Middle East, building a cross-border stablecoin payment network and accumulating experience for future CBDC cross-border settlement pilots. The “Hong Kong pilot + Singapore verification + global replication” approach demonstrates the bank’s strategic ambition for the stablecoin market far beyond a single market.