Specifically, SC Ventures, the innovation, fintech investment, and ventures arm of Standard Chartered, is collaborating with SBI Holdings, which is a Japanese financial conglomerate, to establish a Digital Asset Joint Venture investment company in the United Arab Emirates (UAE), with a planned capitalization of USD 100 million.
The decision to form this joint venture stems from the UAE's growing prominence as a fintech hub, attributed to its regulatory environment, robust infrastructure, and skilled workforce. SC Ventures aims to leverage its expertise in digital assets gained from ventures like Zodia Custody and Zodia Markets, as well as investments in fintech entities such as Ripple and Metaco.
In May 2023, Standard Chartered signed a memorandum of understanding with the Dubai International Financial Centre to collaborate on digital assets, including custody services. During the same month, SC Ventures divested its stake in Metaco SA, a Swiss-based tech firm, with Ripple acquiring Metaco for USD 250 million. Ripple is among SC Ventures' portfolio companies.
The Digital Asset Joint Venture plans strategic and minority investments in market infrastructure, risk management and compliance tools, DeFi, tokenization, consumer payments, and the Metaverse. This venture represents one of several strategic initiatives, and SC Ventures intends to continue expanding its presence in the region and the broader digital assets ecosystem.
In the company press release, officials from SBI Holdings expressed enthusiasm about the partnership, highlighting the collaboration's potential in the digital asset space. SC Ventures representatives emphasized their commitment to shaping the future of finance, citing the joint venture as part of ongoing strategic initiatives.
The collaboration has received positive recognition from officials at the Dubai International Financial Centre, who acknowledged the pivotal role DIFC plays in fostering an environment conducive to investment, growth, and innovation in the evolving landscape of digital assets.
In September 2023, SC Ventures introduced audax Financial Technology, a provider of digital banking technology solutions. The primary objective behind this launch was to support banks and financial institutions in expediting their digital transformation efforts. The goal was to enable the adoption of new business models, cater to emerging customer segments, and diversify revenue streams.
According to the accompanying press release, the business-to-business-to-any-end-user (B2B2X) market is anticipated to achieve annual revenues of USD 440 billion by 2030. This growth projection is attributed to advancements in financial infrastructure, digital banking, and Embedded Finance.
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