Standard Chartered Crypto Brokerage Launch Signals Strategic Pivot Amid Revised Ethereum Forecast
London, October 2025 – Standard Chartered, the British multinational banking giant, is reportedly advancing plans to launch a cryptocurrency prime brokerage platform through its venture capital arm SC Ventures, according to sources familiar with the matter. This strategic development emerges simultaneously with the bank’s decision to revise its medium-term Ethereum price forecasts downward, creating a fascinating narrative about institutional approaches to digital asset markets. The dual announcement highlights how traditional financial institutions are navigating the complex cryptocurrency landscape with both expansion and caution.
Standard Chartered’s Crypto Prime Brokerage Ambitions
Bloomberg reported on Monday that Standard Chartered is in early-stage discussions to establish a comprehensive crypto trading and prime brokerage platform. This platform would operate under SC Ventures, the bank’s innovation and ventures division. Although the bank has not officially confirmed these plans, sources indicate that discussions are progressing. A definitive timeline for launch remains undetermined. This development follows Standard Chartered’s July 2025 launch of cryptocurrency trading services for institutions and corporations, which allowed trading of leading digital assets.
Prime brokerage services in traditional finance typically provide bundled services including securities lending, leveraged trade execution, and cash management for large investors. A crypto prime brokerage would extend these sophisticated services to digital asset markets. Consequently, this move would position Standard Chartered among a select group of traditional banks offering institutional-grade cryptocurrency infrastructure. The bank’s existing digital asset research team, led by Geoff Kendrick, has established credibility through detailed market analysis and price forecasts.
Institutional Crypto Adoption Accelerates
Standard Chartered’s reported plans align with broader trends across global financial institutions. Investment banking giant Morgan Stanley recently filed to launch an Ether exchange-traded fund (ETF), marking its third cryptocurrency ETF filing. Meanwhile, Bank of America approved four spot Bitcoin ETFs for proactive recommendation through its network of over 15,000 wealth advisors earlier this month. These developments demonstrate how major financial institutions are systematically integrating cryptocurrency products into their service offerings.
The institutional adoption timeline reveals accelerating momentum:
- 2021-2023: Initial cryptocurrency custody and trading services
- 2024: Expansion to ETF products and structured products
- 2025: Development of comprehensive prime brokerage platforms
Traditional banks face regulatory considerations, technological requirements, and client demand when entering cryptocurrency markets. However, the potential revenue from serving institutional clients seeking exposure to digital assets provides strong motivation. Furthermore, banks must balance innovation with risk management, particularly given cryptocurrency market volatility.
Revised Ethereum Forecasts Reflect Market Realities
Despite its expansion into cryptocurrency services, Standard Chartered has trimmed its medium-term price outlook for Ethereum. The bank lowered its Ether price forecast to $7,500 for the end of 2026, down from its previously forecasted $12,000. Additionally, it reduced its end-2028 forecast from $25,000 to $22,000. Geoff Kendrick, Standard Chartered’s global head of digital assets research, explained this adjustment in a Monday report shared with Crypto News Insights.
“Weaker-than-expected Bitcoin performance has dampened prospects for all digital assets against the USD given Bitcoin’s continued dominance of the sector,” Kendrick wrote. The research note emphasized that Bitcoin’s market performance significantly influences broader digital asset valuations. Standard Chartered maintains a long-term bullish outlook, however, still expecting Ether to surpass $40,000 by 2030, raising this target from the previous $30,000 forecast.
| Timeframe | Previous Forecast | Revised Forecast | Change |
|---|---|---|---|
| End of 2026 | $12,000 | $7,500 | -37.5% |
| End of 2028 | $25,000 | $22,000 | -12% |
| By 2030 | $30,000 | $40,000 | +33.3% |
Market Data Reveals Divergent Investor Behavior
On-chain data from crypto intelligence platform Nansen presents a complex picture of Ethereum market dynamics. During the previous week, large cryptocurrency investors, commonly called “whales,” accumulated $16.5 million in Ether tokens across 324 wallets. This acquisition rate doubled from the previous week, indicating increased institutional accumulation despite price declines. Conversely, the industry’s leading traders tracked as “smart money” sold $7.13 million in spot ETH during the same period.
Ethereum has experienced significant price pressure recently, falling 17% over the past three months and 5.4% in the past year. At the time of writing, ETH trades at $3,105 according to Nansen data. This divergence between whale accumulation and smart money selling suggests conflicting views on Ethereum’s near-term prospects. Market analysts typically interpret such patterns as indicating potential volatility ahead, with different investor cohorts pursuing distinct strategies.
Strategic Implications for Traditional Finance
Standard Chartered’s dual approach—expanding services while adjusting forecasts—reflects a sophisticated institutional strategy. Banks entering cryptocurrency markets must navigate several challenges including regulatory compliance, technological integration, and market volatility. The development of a prime brokerage platform represents a more advanced service tier than basic trading, suggesting Standard Chartered sees sufficient institutional demand to justify the investment.
The bank’s research team provides crucial market intelligence that informs both client services and internal strategy. By maintaining detailed price forecasts and market analysis, Standard Chartered establishes itself as a knowledgeable participant rather than merely a service provider. This approach builds credibility with institutional clients who require sophisticated market insights alongside execution services. Moreover, the bank’s willingness to revise forecasts demonstrates analytical rigor and responsiveness to changing market conditions.
Regulatory Landscape and Future Developments
Financial institutions expanding into cryptocurrency services must consider evolving regulatory frameworks across multiple jurisdictions. The United Kingdom, where Standard Chartered is headquartered, has been developing comprehensive cryptocurrency regulations through the Financial Conduct Authority. These regulations aim to balance innovation with consumer protection and financial stability. Additionally, global coordination through organizations like the Financial Stability Board influences how banks approach digital assets.
Standard Chartered’s venture capital approach through SC Ventures provides flexibility for innovation while managing regulatory and reputational risks. The venture structure allows the bank to explore new business models with appropriate risk containment. If successful, the crypto prime brokerage platform could eventually integrate with the bank’s core operations. This staged approach reflects prudent risk management while pursuing growth opportunities in emerging digital asset markets.
Conclusion
Standard Chartered’s reported plans to launch a cryptocurrency prime brokerage platform alongside revised Ethereum forecasts illustrate the nuanced approach traditional financial institutions are taking toward digital assets. The bank appears committed to expanding its cryptocurrency services while maintaining analytical rigor in its market assessments. This balanced strategy acknowledges both the opportunities in institutional cryptocurrency adoption and the realities of market volatility. As more traditional banks develop sophisticated digital asset offerings, Standard Chartered’s approach may serve as a model for combining service expansion with disciplined market analysis. The coming months will reveal whether these reported plans materialize and how they influence broader institutional adoption of cryptocurrency services.
FAQs
Q1: What is a crypto prime brokerage platform?
A crypto prime brokerage platform provides institutional investors with bundled services including trading execution, securities lending, custody, and financing specifically for cryptocurrency assets. These platforms serve as comprehensive infrastructure for large-scale digital asset investment.
Q2: Why did Standard Chartered lower its Ethereum price forecast?
Standard Chartered cited weaker-than-expected Bitcoin performance as the primary reason for revising its Ethereum forecasts downward. The bank’s research indicates Bitcoin’s continued market dominance means its performance significantly influences valuations across all digital assets.
Q3: How does Standard Chartered’s approach compare to other banks?
Standard Chartered appears to be taking a more comprehensive approach than some competitors by potentially offering prime brokerage services alongside research and trading. Other banks have focused more narrowly on specific products like ETFs or basic trading services.
Q4: What are the main challenges for banks entering cryptocurrency markets?
Banks face regulatory compliance across multiple jurisdictions, technological integration with legacy systems, market volatility management, cybersecurity requirements, and building client trust in new asset classes when entering cryptocurrency markets.
Q5: How might Standard Chartered’s moves affect broader cryptocurrency adoption?
If successful, Standard Chartered’s expansion into cryptocurrency prime brokerage could accelerate institutional adoption by providing sophisticated infrastructure that meets traditional finance standards. This could increase institutional capital flows into digital assets and potentially reduce volatility through more diversified participation.
