SC Ventures plans US$250M digital asset fund

The news that SC Ventures, the venture arm of Standard Chartered, is planning to raise a US$250 million digital asset fund for early-stage firms is more than just a headline; it is a powerful signal of a broader shift in the financial world. Announced at the Money 20/20 conference in Riyadh, the fund will target global opportunities with backing from Middle Eastern investors, a region rapidly emerging as a blockchain hub. The fund’s specific focus on companies building the underlying digital custody infrastructure, compliance tools, and hybrid platforms that connect traditional and crypto ecosystems highlights a strategic move to build out the regulated, institutional-grade infrastructure required for broader adoption. This planned fund, alongside the firm’s other initiatives like a separate US$100 million Africa fund, underscores a profound change in institutional mindset, moving digital assets from the fringe to the financial mainstream.

For years, institutional investors approached digital assets with caution, citing concerns about regulatory uncertainty and the need for secure custody solutions. However, recent data suggests this hesitation is giving way to increasing conviction. According to the 2025 Institutional Investor Digital Assets Survey by EY-Parthenon and Coinbase, a remarkable 86% of surveyed institutions either already have exposure to digital assets or plan to allocate to them in 2025. This is not just a cautious toe-dip; a significant 59% of these investors plan to commit over 5% of their assets under management (AUM) to the space. This establishes a new baseline for institutional engagement and highlights a fundamental belief in the long-term value of digital assets.

This trend is not limited to smaller funds. The EY report found that 45% of institutions with more than $500 billion in AUM are allocating more than 1% of their portfolios to digital assets, suggesting a substantial amount of capital from traditional investors is now flowing into the market.

The maturing market is also leading to more sophisticated investment strategies. While Bitcoin and Ethereum were the initial entry points, institutional investors are now diversifying their portfolios. The EY-Parthenon survey reveals that 73% of institutional investors now hold cryptocurrencies other than Bitcoin and Ethereum, signaling a more nuanced approach to the asset class.

The interest extends beyond just cryptocurrencies to a broader ecosystem of digital assets. Institutions are increasingly exploring new use cases for stablecoins, including for transactional convenience, foreign exchange, and yield generation. There is also a growing appetite for decentralized finance (DeFi) protocols and the tokenization of real-world assets. In fact, institutions are looking to move more quickly toward investing in tokenized assets, with some firms like hedge funds being particularly bullish on their timelines. The SC Ventures fund’s focus on companies building the underlying infrastructure—such as digital custody, compliance tools, and hybrid platforms—perfectly aligns with this need to bridge traditional and decentralized finance.

The transition to a more institutional-led digital asset market is not without challenges. Regulatory clarity remains a key catalyst for growth, and a source of concern for many investors. However, as regulations evolve and new, robust infrastructure is built, the foundation for further institutional adoption becomes stronger. The SC Ventures fund is a testament to this evolution, and it is a powerful indicator that the future of finance will be built on the very digital rails being developed today.