Standard Chartered Bank's SC Ventures arm will launch a $250 million fund for digital asset investments in financial services, targeting a 2026 rollout with contributions from Middle Eastern investors.

Executive Summary

Standard Chartered Bank's venture capital arm, SC Ventures, is set to launch a $250 million fund dedicated to digital asset investments within the financial services sector. The fund, slated for a 2026 debut, aims to attract capital from Middle Eastern investors, signaling a growing institutional commitment to the digital asset market.

The Event in Detail

SC Ventures is actively preparing to raise $250 million for its new digital asset investment fund. This initiative is specifically designed to target opportunities within the financial services industry. Gautam Jain, an operating member at SC Ventures, confirmed that capital raising efforts for the fund would commence soon, as stated on the sidelines of the Money 20/20 event in Riyadh, Saudi Arabia. The fund's investment scope is global, reflecting a broad approach to digital asset integration.

Market Implications

The establishment of SC Ventures' $250 million fund signifies increasing institutional interest and capital allocation towards digital assets, which is anticipated to bolster market confidence. This move aligns with a broader trend of traditional financial entities venturing into the digital asset space. For instance, HashKey Group is developing a Digital Asset Treasury (DAT) Fund with a target size exceeding $500 million, focusing on Bitcoin and Ethereum ecosystems to bridge traditional finance with crypto. Similarly, Credit Saison's investment arm, Saison Capital, launched Onigiri Capital, raising $35 million of its $50 million target to invest in cryptocurrency and blockchain technologies, including stablecoins, tokenization, and payments. These concurrent efforts from major financial institutions underscore the validation of digital assets as an emerging asset class and are expected to attract further traditional financial players.

Broader Context

The contribution from Middle Eastern investors to the SC Ventures fund highlights the region's strategic importance in the evolving digital asset landscape. Middle Eastern countries are actively establishing structured regulatory frameworks, including licensing regimes such as VARA in Dubai and Bahrain's CRA module, to attract both startups and institutional giants. The region also features clear tax policies, such as Saudi Arabia's zero personal capital-gains policy and Bahrain's tax-free environment, further incentivizing digital investment. Furthermore, GCC-wide CBDC pilots and enhanced KYC enforcement indicate a proactive stance by regional authorities in preparing for a digital financial future, making the Middle East a pivotal hub for digital asset innovation and investment.