Author: Zhang Feng

In January 2026, Standard Chartered Bank has made frequent moves in the field of crypto assets in Hong Kong. From the preparation of institutional prime brokerage business to the implementation of retail crypto trading services, to cross-border stablecoin payment cooperation, it has formed a crypto business layout covering multiple scenarios and the entire chain.

This series of measures not only demonstrates the strategic determination of this century-old bank on the digital asset track, but is also deeply tied to Hong Kong's goal of building an international digital asset financial hub. With the global encryption regulatory framework gradually becoming clearer and institutional capital accelerating its entry, Standard Chartered's intensive actions not only accurately grasp industry trends, but also lay the foundation for the large-scale implementation of compliant digital assets such as stablecoins.

1. Overview of Standard Chartered Bank’s encryption business layout in January 2026 (organized based on public information)

In January 2026, Standard Chartered Bank took Hong Kong as the core, linked up with regional markets such as Singapore, and intensively launched a number of crypto-asset-related businesses, forming a layout characterized by "parallel institutional and retail, coordination of custody and transactions, and cross-border and local linkage". The three core actions constitute the main line of this month's business layout.

(1) Preparation for the launch of cryptocurrency prime broker business

On January 12, Bloomberg disclosed that Standard Chartered Bank is preparing to launch a cryptocurrency prime brokerage (Prime Brokerage) service. This business is planned to be placed under the group's wholly-owned venture capital arm SC Ventures, rather than being included in the bank's core balance sheet. The service positioning focuses on institutional clients such as hedge funds and family offices, and provides one-stop solutions for custody, financing, clearing, transaction execution, and risk management. It is not currently available to retail users.

This preparation is not an isolated action, but is connected with the "Project37C" officially announced by SC Ventures in December 2025 - a light financing and market platform covering custody, tokenization, and market access functions. The relevant discussions are still in the early stages and there is no clear launch timetable. The target plan is to launch the pilot from the end of 2026 to the beginning of 2027.

At the infrastructure level, this business will deeply integrate Standard Chartered's existing crypto ecological resources, rely on Zodia Custody (institutional-grade digital asset custody platform) and Zodia Markets (institutional crypto trading venue) to build a closed-loop service system, reduce dependence on external third-party institutions, and strengthen service autonomy and security.

(2) Mox Bank launches compliant crypto retail trading service in Hong Kong

On January 26, Mox Bank, a Hong Kong virtual bank supported by Standard Chartered Bank, announced that it had been upgraded to No. 1 license by the Hong Kong Securities and Futures Commission and officially launched cryptocurrency trading services, becoming the second digital bank in Hong Kong (after ZA Bank) to provide such services.

This service is launched through the Mox Invest platform. Initially, it only provides buying and selling services for the two mainstream cryptocurrencies denominated in US dollars, Bitcoin and Ethereum. The transaction and custody links adopt a cooperative model - it cooperates with the licensed virtual asset trading platform HashKey Exchange to achieve transaction matching, and cooperates with HashKey Custody to provide asset custody services. It does not support the deposit and withdrawal operations of crypto assets, and is limited to closed-loop trading within the platform. In terms of rates, a tiered pricing strategy is implemented. The transaction commission rate for basic members is 1.25%, and elite members can enjoy a preferential rate of 0.5%. With Mox Bank's accumulated customer base of 750,000 (covering approximately 12% of Hong Kong's account-opening population), this service can quickly reach a large number of retail users, opening up the connection between traditional banking channels and the crypto asset market.

(3) Singapore’s stablecoin payment cooperation expands cross-border scenarios

On January 28, Standard Chartered Bank announced that it has jointly launched DeCard credit card with DCS Card Center, which supports daily payment scenarios of Singapore's stable currency. In this cooperation, Standard Chartered Bank is mainly responsible for providing virtual account services and API interfaces. Through technological empowerment, it can realize instant identification and verification of payment transactions, effectively improving the efficiency and transparency of stable currency payments. The layout of the Singapore market is not an isolated pilot, but a synergy with Hong Kong’s crypto business. Standard Chartered plans to expand the stablecoin payment model to other regional markets, gradually build a cross-border stablecoin payment network, and accumulate practical experience for the large-scale application of compliant stablecoins in the future.

In addition, combined with previously public information, Standard Chartered’s encryption business layout in Hong Kong this month also covers the implementation of digital asset custody services. Following its layout in Luxembourg and the United Arab Emirates, Standard Chartered officially launched Bitcoin and Ethereum custody services in Hong Kong in January, becoming the first global systemically important bank to provide mainstream cryptocurrency custody services in Hong Kong. Multiple business actions echo each other, forming the complete layout logic of Standard Chartered’s “infrastructure construction + scenario-based implementation + cross-border collaboration” in the field of crypto assets.

2. The motivation and problem solving for Standard Chartered Bank’s encryption business layout

Standard Chartered Bank's intensive launch of encryption business in January is essentially based on multiple considerations of market demand, strategic transformation, risk avoidance and ecological construction. It not only aims to capture the dividends of emerging tracks, but also attempts to solve the core pain points in the integration of traditional finance and encryption markets.

(1) Core launch motivation

First, seize the blue ocean market for institutional crypto asset services. As the global encryption regulatory framework gradually becomes clearer, the willingness of institutional capital to enter the encryption market continues to rise. The CEO of Standard Chartered Bank previously publicly stated that "all transactions will eventually be settled through the blockchain, and all currencies will be digitized." This judgment has become the core guidance of the group's encryption strategy. Data shows that among high-end customers in Hong Kong with liquid assets exceeding HK$1 million, 30% already hold digital assets, and 78% plan to participate in investments in the next 12 months, and generally prefer to participate through compliant financial institutions. The layout of crypto prime brokerage business and institutional custody services is aimed at this demand, trying to capture the dividends of institutional crypto capital flows by relying on the bank's compliance reputation and operational capabilities.

Second, consolidate the strategic advantages of the Hong Kong market and fit in with the regional digital financial strategy. Hong Kong, as an international financial center, is accelerating the "Digital Hong Kong Dollar+" project and striving to build a global digital asset hub. Standard Chartered's encryption business layout is highly consistent with the SAR government's strategy. It can not only obtain regulatory support with the help of policy dividends, but also consolidate its competitiveness in the Hong Kong market through first-mover advantages. Compared with other international banks, Standard Chartered has a deep customer base and channel resources in Hong Kong. Mox Bank’s retail encryption services can quickly convert existing customers and form differentiated competitive barriers.

Third, build a global encryption ecological closed loop to achieve collaborative business growth. Standard Chartered's layout this time is not limited to a single market or business, but is centered around the entire chain of "custodial-transaction-financing-payment". By integrating internal resources such as Zodia series platforms, SC Ventures, Mox Bank, and linking with external licensed institutions such as HashKey, Standard Chartered builds an encryption ecosystem covering institutions and retail, local and cross-border. This ecological layout can not only improve customer stickiness, but also reduce operating costs through business collaboration, laying the foundation for the subsequent expansion of tokenized assets, legal digital currency pilot and other businesses.

Fourth, avoid regulatory capital constraints and balance innovation and risk. According to the final version of the Basel III Agreement, "unlicensed" cryptocurrencies such as Bitcoin and Ethereum will be given a risk weight of 1,250% if included in a bank's core balance sheet. This means that banks need to calculate additional capital, which greatly limits the expansion of business scale. Zanda has placed its crypto prime brokerage business under SC Ventures, effectively isolating the bank's core balance sheet and crypto business risks, achieving innovative breakthroughs under the premise of compliance, and taking into account business development and risk control.

(2) Core problem solving

First, solve the compliance and infrastructure pain points for institutions entering the encryption market. In the past, when institutional investors participated in the crypto market, they often had to piece together fragmented solutions from offshore exchanges and shadow banks, facing problems such as high compliance risks, fragmented services, and insecure asset security. Standard Chartered's crypto prime brokerage service uses an integrated solution of "fiat channel-transaction-settlement-custody" and relies on bank-level compliance systems and custody technology to clear entry barriers for institutional customers and meet their core needs for compliance, security and operational standardization.

Secondly, solve the threshold and trust issues for retail users’ encryption investment. Retail users generally face pain points such as high technical thresholds, insufficient platform security, and lack of regulatory protection when participating in the crypto market. Especially for bank customers, the unfamiliar interfaces and compliance risks of traditional exchanges reduce their willingness to participate. Mox Bank provides encrypted transaction services through banking channels, endorsed by Standard Chartered's brand reputation, simplifying the participation process, and at the same time reducing retail users' investment risks and trust costs through tiered rates and compliant custody.

Once again, solve the problem of separation between traditional finance and crypto markets. For a long time, the traditional financial system and the crypto market have been relatively separated, with funds unable to circulate in compliance and business synergy insufficient. Standard Chartered's business layout builds a bridge for the integration of the two - institutional customers can access crypto services through existing bank accounts, retail users can rely on familiar banking platforms to participate in crypto investments, and stablecoin payment realizes the connection between crypto assets and daily consumption scenarios, promoting the deep integration of traditional finance and crypto markets.

Finally, solve the efficiency and cost pain points of cross-border payments. Traditional cross-border remittance needs to go through multiple intermediaries, which takes several days and has high handling fees. However, stablecoin payment has the advantages of instant arrival and low cost. Standard Chartered's stablecoin payment cooperation in Singapore enables instant verification of transactions through technological empowerment, accumulating experience for the subsequent expansion of stablecoin applications in cross-border trade, cross-border e-commerce and other scenarios, and is expected to reconstruct the cross-border payment system.

3. Market business opportunities brought by Standard Chartered’s encryption business layout

Standard Chartered Bank's crypto business layout in Hong Kong and surrounding markets has not only created new profit growth points for itself, but also promoted the development of the upstream and downstream industrial chains, spawned business opportunities in four major dimensions: retail, institutions, technology, and cross-border, and accelerated the ecological maturity of the digital asset market.

(1) Retail side: wealth management expansion and customer conversion opportunities

Mox Bank's 750,000 existing customers provide a natural user base for crypto retail business. You can participate in crypto transactions without additional registration on the exchange, which significantly lowers the entry threshold and will generate a large number of crypto investment needs from traditional bank customers.

On the one hand, the hierarchical rate structure will drive the accumulation of customer assets. The low rate of 0.5% for elite members can attract high-net-worth customers to increase asset allocation, which will in turn generate demand for wealth management products such as crypto-asset fixed investment, portfolio allocation, and income enhancement, bringing fees and management fee income to banks.

On the other hand, this service will attract cross-border retail funds from Hong Kong and the Greater Bay Area to enter through compliance channels, expand the overall encryption transaction scale, and at the same time drive user growth and transaction commission income of cooperative platforms such as HashKey. In addition, with the popularity of retail crypto transactions, banks can rely on customer transaction data to accurately push personalized financial services and realize deep mining of customer value.

(2) Institutional side: collaborative services and B-side ecological opportunities

Standard Chartered’s crypto prime brokerage business and institutional custody services will drive the improvement of the institutional-level crypto service ecosystem. First of all, Standard Chartered can link up with its traditional institutional business to provide hedge funds, asset management companies and other customers with an integrated solution of "traditional financial services + crypto asset services" to increase customer stickiness and attract crypto-native institutions to connect with traditional financial markets through Standard Chartered's compliance channels. Secondly, the cooperation model with HashKey will create a demonstration effect, attracting more licensed virtual asset trading platforms (VATPs) to seek cooperation through banking channels, and generate B-side service opportunities such as institutional-level liquidity sharing, clearing and settlement outsourcing, and compliance consulting. Thirdly, with the inflow of institutional crypto funds, the demand for issuance and trading of tokenized assets (RWA) will continue to grow. Platforms such as CoreClimate of the Hong Kong Stock Exchange can link up with Standard Chartered to expand the circulation channels of tokenized products such as green bonds and carbon points, and build a complete industry chain of "tokenized asset issuance-transaction-custody".

(3) Technology: surge in demand for compliance technology and infrastructure

Compliance operations of encryption businesses have put forward higher requirements for technical services, which will promote the development of compliance technology and blockchain infrastructure industries. In the field of compliance technology, AI-driven transaction monitoring systems, on-chain asset traceability tools, anti-money laundering (AML) and customer identification (KYC) solutions will usher in explosive demand. The procurement and application of such technologies by Standard Chartered and partner institutions will provide technology companies with a broad market space. In the field of infrastructure, demand for institutional-level custody security technology, cross-chain interoperability solutions, and blockchain settlement systems will continue to grow. The expansion and upgrade of Zodia Custody will drive business growth for upstream technology service providers. In addition, with the advancement of the digital Hong Kong dollar pilot, Standard Chartered's practice in the field of blockchain payment and settlement will provide technology companies with scenario verification opportunities and accelerate technology maturity and commercialization.

(4) Cross-border side: Stablecoin application and scenario expansion opportunities

Standard Chartered's stablecoin payment cooperation in Singapore forms a synergy with Hong Kong's encryption business, paving the way for the cross-border application of stablecoins. On the one hand, stablecoin payment services can be gradually expanded to cross-border e-commerce, supply chain finance and other scenarios in the Greater Bay Area. Banks rely on virtual accounts and API interfaces to provide enterprises with stablecoin transaction reconciliation and instant settlement of cross-border funds services, reducing the cost and cycle of cross-border payment for enterprises, while attracting more enterprises to use stablecoins for cross-border transactions. On the other hand, with the enrichment of application scenarios for compliant stablecoins, issuers will seek custody, clearing and technical support from banks, creating opportunities for supporting services for stablecoin issuance.

In addition, Standard Chartered's global network can promote the replication and promotion of stablecoin payment models in markets such as Asia, Europe, and the Middle East, build a cross-border stablecoin payment network, and accumulate experience for subsequent cross-border settlement pilots of legal digital currencies.

4. The role of the Hong Kong SAR government in the overall strategy of encryption supervision

The Hong Kong SAR government has continued to promote the improvement of the regulatory framework for crypto assets in recent years. The core goal is to create an international digital asset hub with "clear supervision, innovation and inclusiveness, and controllable risks." Standard Chartered Bank's crypto business layout is highly consistent with this strategy. It has played an important role in pilot verification, framework improvement, ecological construction, and international demonstration, and has become the core starting point for the implementation of regulatory strategies.

(1) Verify the feasibility of the regulatory framework and promote optimization and improvement of rules

The Hong Kong Securities Regulatory Commission’s issuance of crypto trading licenses to virtual banks and clarifying the regulatory boundaries of crypto prime brokerage business are important components of its crypto regulatory framework, and Standard Chartered’s business layout provides practical scenarios for the implementation of these rules.

Mox Bank has obtained the No. 1 license to carry out retail crypto transactions, which can verify the feasibility of regulatory rules such as "licensed operations, investor suitability management, custody separation" in Hong Kong's retail crypto market. Through actual operational data feedback, it can provide a reference for regulatory agencies to optimize rate supervision, deposit and withdrawal management, risk prevention and control and other rules. The preparation and pilot of the crypto prime brokerage business will help regulatory agencies clarify core rules such as capital requirements, risk isolation standards, and compliance responsibility divisions for institutional-level crypto services, fill the previous gaps in the supervision of institutional crypto services, and promote the upgrade of Hong Kong's crypto regulatory framework from "principle" to "refined".

(2) Build a compliance ecological benchmark and guide the standardized development of the industry

As a global systemically important bank, Standard Chartered's compliance layout for its encryption business has set a benchmark for the industry and helps guide market entities to standardize their operations. Previously, there were some unlicensed and highly speculative platforms operating in the Hong Kong crypto market, which disrupted the market order. However, Standard Chartered has conveyed the development concept of "compliance first, risk controllable" to the market through the "bank endorsement + licensed cooperation + risk isolation" model, which will attract more traditional financial institutions and compliant companies to enter the market, squeezing the survival space of non-compliant platforms.

At the same time, Standard Chartered has cooperated with licensed institutions such as HashKey to build a compliance ecological model of "bank + licensed VATP", providing a replicable compliance path for other market entities and accelerating the standardization and institutionalization process of Hong Kong's encryption market.

(3) Undertake policy dividends and promote the construction of digital asset hub

The Hong Kong SAR government is making every effort to build a global digital asset hub through the "Digital Hong Kong Dollar" pilot plan, tokenized asset pilots, cross-border blockchain cooperation and other initiatives. Standard Chartered's business layout has accurately taken on these policy dividends and become the core force in hub construction.

On the one hand, Standard Chartered participated in the digital Hong Kong dollar offline payment test and explored the settlement model of "digital Hong Kong dollar/tokenized deposits to purchase tokenized assets", which provided practical support for the implementation of digital Hong Kong dollar application scenarios and accelerated the large-scale promotion of legal digital currencies. On the other hand, Standard Chartered's institutional encryption services and cross-border stablecoin cooperation will attract global crypto capital, institutions and talents to Hong Kong, enhance Hong Kong's voice and competitiveness in the global digital asset market, and help Hong Kong surpass cities such as Singapore and Dubai to become the core hub for global digital asset trading and settlement.

(4) Strengthen the international demonstration effect and enhance the recognition of the regulatory framework

Hong Kong's encryption regulatory framework attempts to find a balance between "innovation and risk" to provide a reference for other regions around the world, and Standard Chartered's business layout strengthens the international demonstration effect of this framework. As a multinational bank, Standard Chartered's crypto business practices in Hong Kong will demonstrate the feasibility and inclusiveness of Hong Kong's regulatory framework to the global market, attract more international financial institutions and crypto companies to enter the Hong Kong market, and at the same time promote mutual regulatory recognition and cooperation between Hong Kong and the European Union, the United Arab Emirates and other regions.

In addition, Standard Chartered's crypto custody and prime brokerage businesses in Hong Kong are synergistic with its presence in Luxembourg and the United Arab Emirates, which will help build a globally unified compliant crypto service system and enhance the global recognition and influence of Hong Kong's crypto regulatory framework.

5. Forecast of impact on Hong Kong’s banking industry and crypto market

Standard Chartered Bank's encryption business layout will have a profound impact on the industry. It will not only reshape the competitive landscape of Hong Kong's banking industry, but also promote the structural upgrade of Hong Kong's encryption market and accelerate the in-depth integration of traditional finance and digital assets.

(1) Impact on Hong Kong’s banking industry

First, it triggers the industry’s encryption business to follow suit and reshape the competitive landscape. Standard Chartered's first-mover advantage will force other mainstream banks such as HSBC and Bank of China Hong Kong to accelerate the deployment of encryption business. It is expected that in the next 6-12 months, more Hong Kong banks will launch retail encryption trading services through their own virtual banks or cooperation with licensed VATPs, and at the same time prepare for institutional-level encryption prime brokerage and custody services. The focus of competition in the banking industry will shift from traditional business to digital asset services. Compliance capabilities, ecological resources, and technical strength will become core competitive factors. Banks with first-mover advantages and ecological integration capabilities will dominate the market.

Second, promote the upgrading of banking business structure and open up new profit growth points. Crypto business will become a new profit engine for Hong Kong banks. Income from handling fees, custody fees, financing interest, etc. will gradually increase, while driving the collaborative growth of traditional businesses such as wealth management and cross-border payments. In the long term, banks will gradually realize a two-wheel-driven business structure of "traditional finance + digital assets", reduce their reliance on traditional interest margin income, and improve business risk resistance and profitability. In addition, the development of encryption business will accelerate the digital transformation of banks, forcing banks to upgrade technology systems, optimize compliance systems, cultivate professional talents, and improve overall operational efficiency and service capabilities.

Third, strengthen the collaborative relationship between banks and regulators to improve industry compliance levels. As encryption business becomes one of the core businesses of banks, banks will form a closer collaborative relationship with regulatory agencies, participate in the formulation and optimization of regulatory rules, and promote the unification and improvement of industry compliance standards. At the same time, the bank's risk isolation model and compliance operation experience will provide reference for the industry, helping the entire banking industry to establish a complete encryption business risk prevention and control system and balance innovation and risk.

(2) Impact on the Hong Kong crypto market

First, accelerate the process of market institutionalization and optimize the investor structure. Standard Chartered's institutional encryption services will attract a large number of institutional capital such as hedge funds, family offices, and asset management companies to enter the market, changing the investor structure of the Hong Kong encryption market that was previously dominated by retail speculation, and improving the stability and professionalism of the market. The inflow of institutional capital will promote more rational pricing of crypto assets and reduce price fluctuations. At the same time, it will lead to the enrichment of compliant products such as tokenized assets and crypto ETFs to meet the needs of different institutional investors, forming a virtuous cycle of "institutional capital entry - product innovation - market expansion".

Second, expand the market size and enhance global competitiveness. Mox Bank's retail encryption services will activate the encryption investment needs of a large number of traditional bank customers. Coupled with the continued inflow of institutional capital, the trading scale and asset custody scale of Hong Kong's encryption market will increase significantly. At the same time, Standard Chartered's global ecological layout will attract more international crypto companies and capital to gather in Hong Kong, strengthen Hong Kong's status as a global digital asset hub, and form differentiated competition with cities such as New York and London. It is expected that in the next 1-2 years, Hong Kong will become one of the core centers for global institutional crypto-asset trading and custody, and its market influence will continue to increase.

Third, promote ecological improvement and accelerate the large-scale implementation of stablecoins. Standard Chartered's business layout will drive the coordinated development of the upstream and downstream of the encryption industry chain, forming a complete ecosystem of "bank + licensed VATP + technology service provider + issuer". Stablecoins, as the core carrier connecting the crypto market and traditional finance, will realize scenario expansion and large-scale application under the promotion of Standard Chartered. It is expected that Hong Kong will gradually introduce compliant stablecoin issuance and circulation rules, attracting companies such as Ant International and JD.com to participate in stablecoin issuance, promote the implementation of stablecoins in retail payment, cross-border trade, supply chain finance and other scenarios, and lay the foundation for the promotion of the digital Hong Kong dollar.

Fourth, strengthen risk prevention and control and enhance market credibility. Standard Chartered's compliance operation model will guide the entire market to pay attention to risk prevention and compliance operations, non-compliant platforms will be gradually eliminated, and the market order will be standardized. Bank-level custody technology and risk control systems will improve the security of crypto assets, reduce risks such as hacker attacks and asset misappropriation, and enhance investors' trust in the Hong Kong crypto market. At the same time, through the business supervision of institutions such as Standard Chartered, regulatory agencies can achieve precise control of the market, prevent systemic risks, and ensure the healthy development of the market.

Standard Chartered Bank's intensive layout of crypto business in January 2026 is not a short-term market speculation, but a systematic layout based on long-term strategic judgment. It is not only in line with the development trend of global digital assets, but also deeply bound to the goal of building a digital financial hub in Hong Kong. From a motivation point of view, Standard Chartered balances innovation and compliance through a risk isolation model, trying to leverage the bank's brand advantages and ecological resources to capture the dividends of the crypto market at both the institutional and retail ends. From an industry impact point of view, its measures not only reshape the competitive landscape of Hong Kong's banking industry, but also promote the upgrading of Hong Kong's crypto market in the direction of institutionalization, compliance, and ecology.

It is worth noting that Standard Chartered’s series of actions have always focused on compliant digital assets such as stablecoins, tokenized assets, and legal digital currencies, with obvious intentions to pave the way for the large-scale implementation of stablecoins. With the continuous improvement of Hong Kong's regulatory framework, the gradual maturity of Standard Chartered's encryption ecosystem, and the entry of more traditional financial institutions, Hong Kong is expected to occupy a leading position in the global digital asset competition, and Standard Chartered will also rely on its first-mover advantage to become a benchmark enterprise in the integration of traditional finance and digital assets. In the future, how to deal with challenges such as technological iterations, global regulatory differences, and intensified market competition will be the key to the sustainable development of Standard Chartered and the Hong Kong crypto market.