Global financial heavyweights, SC Ventures and SBI Holdings have joined forces to establish a $100 million cryptocurrency investment vehicle based in the United Arab Emirates (UAE).
In a bid to capitalize on the resurgence of interest in the crypto space, SC Ventures, the investment arm of Standard Chartered Bank, and SBI Holdings, a prominent Japanese financial conglomerate, have announced a strategic partnership. The collaboration aims to set up a joint venture with a substantial investment of $100 million, dedicated to the cryptocurrency sector.
SC Ventures and SBI Holdings unveil plans to invest across various crypto sectors, including decentralized finance, tokenization, infrastructure, payments, and the metaverse.
The joint venture is poised to operate globally, focusing on funding rounds ranging from seed to Series C. This expansive investment approach underlines the partners’ commitment to actively engage with emerging projects and technologies in the dynamic crypto landscape.
SBI and SC ventures launch $100M crypto venture shaping financial future
The newly formed joint venture emphasizes its commitment to making strategic and minority investments in crypto startups.
Alex Manson, CEO of SC Ventures, affirmed the venture’s strategy, stating that it would leverage SC Ventures’ extensive experience in digital assets. This includes insights gained from their involvement in ventures such as Zodia Custody and Zodia Markets, as well as strategic investments in fintech giants like Ripple and Metaco.SC Ventures and SBI Holdings have a history of shared ventures and investments in the crypto space, having previously collaborated on startups like Solv, Zodia Custody, and myZoi.
Notably, SC Ventures successfully exited its stake in Metaco in May, following Ripple’s acquisition of the company for a substantial $250 million. The ongoing partnership between SC Ventures and SBI Holdings further strengthens their position as key players in the evolving crypto landscape.
SBI Holdings extends its commitment to the future of finance by launching a separate fund, anticipating a significant investment of up to 100 billion yen ($663 million) in web3, AI, and fintech startups.
Japanese financial giants, including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group, have reportedly committed to investing more than 50 billion yen in the fund. This additional initiative underscores the growing interest of traditional financial institutions in emerging technologies beyond the realm of cryptocurrencies.
The announcement of the joint venture coincides with positive market indicators, showcasing signs of recovery in the crypto space.
As of now, Bitcoin is trading at approximately $36,800, marking a substantial year-to-date gain of over 120%. The surge in spot crypto trading volume on centralized exchanges in October further indicates renewed interest in the market. Analysts suggest that this resurgence could be indicative of anticipation surrounding the potential approval of a spot Bitcoin ETF early next year.
SC Ventures and SBI Holdings’ joint venture marks a significant stride in the financial sector’s embrace of the burgeoning cryptocurrency space.
The $100 million investment vehicle signals a strategic move by these global financial giants to actively participate in and shape the future of decentralized finance, tokenization, and the metaverse. As traditional institutions continue to explore and invest in the evolving landscape of digital assets, the crypto market is poised for further expansion and integration into the broader financial ecosystem.
