SC Ventures, the venture capital arm of Standard Chartered, in partnership with Japan’s SBI Holdings, has announced the formation of a joint venture focusing on digital assets in the United Arab Emirates (UAE). This collaborative effort aims to invest in a broad spectrum of digital assets, encompassing market infrastructure, risk and compliance tools, decentralized finance (defi), tokenization, consumer payments, and metaverse ventures, as outlined by SC Ventures.
Establishment of a New Digital Asset Joint Venture
The collaboration, revealed on Thursday, involves the creation of a new investment entity in the UAE. The partnership envisages an initial capitalization of $100 million for the venture. The primary objective is to invest in diverse companies within the digital asset domain, ranging from early-stage startups to more established entities at the Series C funding stage.
Alex Manson, the CEO of SC Ventures, highlighted the UAE’s emerging status as a significant fintech hub, particularly in the digital asset sector, attributing this to its robust infrastructure and growing talent pool. The venture aims to capitalize on SC Ventures’ expertise in digital assets, as demonstrated through its ventures like Zodia Custody and Zodia Markets, and investments in entities such as Ripple and Metaco.
Yoshitaka Kitao, CEO of SBI Holdings, expressed enthusiasm about this venture, noting its reinforcement of the strategic relationship between the two entities. SBI Holdings has previously invested in several SC Ventures portfolio companies, including Solv, Zodia Custody, and Myzoi.
Earlier, in May, Standard Chartered had signed a memorandum of understanding with the Dubai International Financial Centre (DIFC), a notable economic zone, focusing on collaborations in the digital asset space, including digital asset custody. Salmaan Jaffery, the Chief Business Development Officer at DIFC, applauded this new venture, recognizing its potential to significantly influence the future financial landscape.
The establishment of this digital asset joint venture in the UAE by SC Ventures and SBI Holdings marks a significant step in the evolution of digital finance. The venture’s focus on a wide array of digital assets positions it as a pivotal player in the rapidly evolving digital financial ecosystem.
[Your opinion on Standard Chartered’s SC Ventures partnering with SBI Holdings for this venture in the UAE is welcomed in the comments section below.]
Frequently Asked Questions (FAQs) about Digital Asset Joint Venture
What is the purpose of the joint venture between SC Ventures and SBI Holdings?
The joint venture aims to establish a digital asset investment company in the UAE, focusing on a wide range of digital assets including market infrastructure, risk and compliance tools, defi, tokenization, consumer payments, and the metaverse.
How much capital is intended for the SC Ventures and SBI Holdings joint venture?
The joint venture is planned to be capitalized with $100 million, targeting investments in various stages of companies within the digital assets spectrum.
Why was the UAE chosen as the location for this digital asset joint venture?
The UAE was selected due to its rapidly growing status as a fintech hub, especially in the digital asset sector, bolstered by its robust infrastructure and a burgeoning talent pool.
What experience does SC Ventures bring to the joint venture?
SC Ventures brings extensive experience in digital assets, demonstrated through its ventures like Zodia Custody and Zodia Markets, and investments in companies such as Ripple and Metaco.
What is the strategic significance of this venture for SBI Holdings and SC Ventures?
This venture further strengthens the strategic relationship between SBI Holdings and SC Ventures, following SBI’s investments in SC Ventures’ portfolio companies like Solv, Zodia Custody, and Myzoi.
How does the Dubai International Financial Centre (DIFC) fit into this joint venture?
Standard Chartered had earlier signed a memorandum of understanding with the DIFC, focusing on collaborations in the digital asset space. The DIFC offers a conducive environment for such ventures, with its established economic zone and supportive financial infrastructure.
More about Digital Asset Joint Venture
- SC Ventures and SBI Holdings Partnership Announcement
- UAE’s Emerging Fintech Hub
- Digital Asset Ventures in the UAE
- Investments in Zodia Custody and Metaco
- Standard Chartered and DIFC Memorandum Understanding
- SBI Holdings’ Investment in SC Ventures Portfolio