Global banking giant Standard Chartered (STAN.L) has announced a strategic partnership with crypto prime broker FalconX, marking its first collaboration with a traditional financial institution. This move underscores the growing institutional demand for digital assets through established finance channels, bridging the gap between traditional banking and the rapidly evolving crypto ecosystem.
A Strategic Collaboration to Enhance Institutional Crypto Services
Under the partnership, FalconX will leverage Standard Chartered’s banking and foreign exchange services, including access to a wide range of fiat currencies, to better serve its institutional clients.
“Our clients will be able to engage more efficiently in fiat currency settlements, which means a lot faster settlement, better capital efficiency, and overall reduced operational risk,” said Matt Long, FalconX’s General Manager of APAC & Middle East, in an interview with Reuters.
The collaboration will initially launch in Singapore and later expand to other regions, including Asia, the Middle East, and the United States, according to Luke Boland, Asia Head of Fintech at Standard Chartered. This marks a significant step for both entities as they tap into the increasing adoption of digital assets by institutional investors.
Bridging Traditional Finance and Digital Assets
The partnership reflects the growing convergence of traditional finance and digital assets. Standard Chartered has been actively expanding its digital asset footprint, launching a digital asset custody service in the United Arab Emirates last year and partnering with OKX in April to enable institutional clients to use cryptocurrencies as collateral.
Meanwhile, FalconX, founded in 2018 and valued at $8 billion following a $150 million funding round in 2022, serves some of the world’s largest institutional clients, including asset managers, sovereign wealth funds, hedge funds, and family offices. Backed by prominent investors like Wellington Management, GIC, and Tiger Global Management, FalconX is well-positioned to capitalize on the rising institutional interest in crypto.
Growing Institutional Demand for Digital Assets
The global cryptocurrency market surpassed $3 trillion in market value in November, fueled by the election of crypto-friendly Donald Trump as U.S. president. This milestone has heightened expectations of a golden era for digital assets, with Standard Chartered projecting the overall value of digital assets to reach $10 trillion by 2026.
The partnership between Standard Chartered and FalconX highlights the increasing appetite for regulated, efficient, and secure avenues to access digital assets. By combining FalconX’s expertise in crypto prime brokerage with Standard Chartered’s global banking infrastructure, the collaboration aims to address key challenges such as settlement speed, capital efficiency, and operational risk.
