In a strategic move that underscores the evolving intersection of traditional finance and digital asset markets, Standard Chartered has partnered with FalconX, a U.S.-based crypto prime broker, to provide enhanced institutional banking infrastructure for digital asset trading and settlement.
The alliance, announced on May 14, begins with a regional rollout in Singapore and is expected to scale to additional jurisdictions, including the Middle East and the United States.
The collaboration will see FalconX integrate Standard Chartered’s global banking network and access to diversified currency pairs into its platform, offering institutional clients - including hedge funds, asset managers, DAOs, token issuers, and payment platforms - a more streamlined and compliant gateway to crypto markets.
This partnership marks the first time FalconX has teamed up with a major traditional bank. It also reflects a broader strategic shift among global financial institutions that are increasingly embedding crypto services into core infrastructure, even amid ongoing regulatory uncertainty.
Why the Partnership Matters
At its core, this agreement is about building institutional-grade bridges between fiat and digital markets. FalconX, which already services some of the world’s largest financial players, gains direct access to banking rails, FX liquidity, and operational services from a globally regulated institution. For Standard Chartered, the deal extends its push into crypto by leveraging FalconX’s connectivity with deep crypto liquidity, derivatives infrastructure, and execution tools.
FalconX processed more than $1.5 trillion in digital asset volume across 400 tokens and has been expanding its institutional product suite through acquisitions and new derivatives offerings. In March 2025, it executed the first block trade of Solana futures on the CME Group, ahead of the contract’s official launch. The firm is backed by investors including Tiger Global, GIC, and Wellington Management, and was last valued at $8 billion.
Meanwhile, Standard Chartered has been scaling its crypto operations in stages. In 2023, it was among the first global banks to offer spot crypto trading desks focused on Bitcoin and Ethereum. It also launched crypto custody services in the UAE, piloted tokenized fund collateral with OKX, and spun out a digital asset custody subsidiary in the EU.
Together, the two firms aim to develop a more integrated ecosystem for institutions looking to trade, settle, and hold digital assets without cobbling together fragmented solutions from offshore exchanges or shadow banking channels.
Regional Focus: Asia First, U.S. and Middle East to Follow
Singapore has been selected as the launchpad for this partnership, reflecting the country’s robust regulatory framework for digital assets. Singapore’s Monetary Authority (MAS) has pursued a licensing regime that permits regulated crypto activity while maintaining strict controls on retail access, making it a prime jurisdiction for institutional experimentation.
FalconX’s APAC and Middle East General Manager Matt Long said the regional rollout will allow the firm to “deliver robust banking and FX solutions to clients who rely on us to operate in crypto markets.” The rollout will include access to global fiat liquidity, cross-border transaction processing, and currency conversions - a suite of services currently lacking in many crypto-native platforms.
From Singapore, the partnership is expected to expand into the Middle East, where Standard Chartered already operates crypto custody services in Dubai and Abu Dhabi. The bank has been active in aligning with local regulators under the UAE’s Virtual Asset Regulatory Authority (VARA), and sees the region as a strategic node in its crypto expansion.
The United States, which remains a patchwork of regulatory ambiguity, is expected to follow - pending additional clarity around crypto licensing, banking access, and custody standards. FalconX, headquartered in San Mateo, California, already serves U.S. institutional clients and holds several regulatory approvals through its subsidiaries.
Institutional Crypto Demand Rising Despite Regulatory Gaps
This partnership comes amid renewed interest from global financial institutions in expanding their crypto strategies, even as regulatory clarity remains inconsistent. The approval of spot Bitcoin ETFs in the United States in early 2024 catalyzed new inflows into the space and signaled growing regulatory tolerance for digital assets in mainstream finance.
Market data supports this trend: global crypto market capitalization has surpassed $3.5 trillion, while stablecoin volumes and institutional staking activity continue to grow across Layer 1 and Layer 2 chains. Analysts at Messari and Sygnum Bank have forecast a strong uptick in banking sector participation in crypto infrastructure by late 2025, citing improving compliance frameworks, investor demand, and macroeconomic rebalancing.
Standard Chartered’s internal forecasts suggest that the crypto market could reach $10 trillion in value by 2026 - an estimate that has guided the bank’s strategy in entering custody, trading, and collateral markets tied to digital assets.
FalconX’s Long noted that client demand is shifting from basic exposure toward integrated, full-stack solutions. “These institutions are not just buying tokens anymore,” he said. “They want compliance, banking, custody, FX, and derivatives - all in one place.”
Expanding Beyond Banking
Although the partnership starts with fiat on/off ramps and currency support, both firms have signaled that it may expand “beyond banking” into collateral services, digital asset lending, margin financing, and custody integration.
Such services are becoming essential for institutions managing complex portfolios involving crypto, tokenized assets, and hybrid investment products. For instance, the ability to post crypto as collateral for fund exposure, or to convert digital assets into fiat for accounting purposes, is now a basic expectation among sophisticated fund managers.
In April, Standard Chartered piloted the use of tokenized fund units and Bitcoin as collateral through a partnership with OKX. This model could be replicated through FalconX, especially if demand grows for synthetic finance instruments and crypto-collateralized structured products.
These moves are not without precedent: earlier this year, BlackRock and JPMorgan also launched internal tokenization pilots, reflecting growing institutional appetite for interoperable digital asset infrastructure.
Regulatory Considerations and Strategic Positioning
While the momentum is clear, both FalconX and Standard Chartered will face regulatory friction - particularly in the U.S. market. The SEC continues to pursue enforcement-led policy, while legislation like the FIT21 Act or stablecoin regulation remains in limbo. Banks that directly interface with crypto firms must navigate complex anti-money laundering (AML), counter-terrorism financing (CTF), and customer verification rules across jurisdictions.
By anchoring their partnership in jurisdictions like Singapore and the UAE first, the firms can test infrastructure and develop compliance playbooks before scaling into more heavily scrutinized markets. It’s a pragmatic strategy that mirrors the path taken by other cross-border financial technology ventures.
Moreover, the partnership reflects a global trend of major financial institutions building crypto-native services outside their traditional bank charters - via joint ventures, digital subsidiaries, or regulated fintech arms.
Standard Chartered’s digital asset strategy appears to align with that model. By pairing with firms like FalconX that already hold regulatory licenses and technical infrastructure, the bank can enter the market more quickly while limiting direct regulatory exposure.
Traditional Finance Is Not Sitting Out Crypto
What partnerships like FalconX and Standard Chartered reveal is not just a short-term commercial opportunity, but a long-term shift toward hybrid finance.
Rather than choosing between traditional and decentralized systems, institutions are increasingly seeking to integrate both. Banking infrastructure and FX rails remain critical to scaling crypto markets, particularly for institutional players that require fiat settlement, regulatory compliance, and operational continuity. At the same time, crypto-native firms need access to these tools to attract and retain institutional clients, especially as regulatory pressures mount and counterparties demand transparency.
The result is an emerging class of hybrid intermediaries - crypto-native but institutionally wired - that serve as bridges between legacy finance and decentralized protocols. FalconX is positioning itself in this space, and Standard Chartered’s involvement shows that large banks are no longer observers, but infrastructure providers in their own right.
The FalconX–Standard Chartered partnership illustrates the maturing infrastructure that institutional crypto requires. From FX liquidity and fiat rails to custody, derivatives, and collateral services, the architecture of digital finance is being rebuilt - this time with bank-grade partners and regulatory oversight.
The coming months will be a test of whether these partnerships can deliver real utility to clients while staying ahead of shifting policy environments. But one thing is clear: the line between traditional banking and crypto finance is no longer distinct - it’s converging. And the institutions ready to operate in that gray space may end up defining the next era of global capital markets.