Standard Chartered's ventures arm, SC Ventures, has announced a collaboration with Japanese conglomerate SBI Holdings to establish a digital asset joint venture in the United Arab Emirates (UAE). The joint venture aims to invest in companies operating in various areas of the digital assets spectrum, including market infrastructure, risk and compliance tools, defi, tokenization, consumer payments, and the metaverse.
Collaboration between SC Ventures and SBI Holdings
SC Ventures, the ventures arm of Standard Chartered, has partnered with SBI Holdings, a Japanese financial conglomerate, to establish a Digital Asset Joint Venture investment company in the UAE. The collaboration aims to capitalize the venture with $100 million. The joint venture will focus on investing globally in companies involved in digital assets, including market infrastructure, risk and compliance tools, defi, tokenization, consumer payments, and the metaverse.
UAE as a Hub for Fintechs in the Digital Asset Space
SC Ventures CEO Alex Manson highlighted that the UAE is rapidly emerging as a hub for fintechs in the digital asset space due to its robust infrastructure and talent pool. The joint venture will leverage SC Ventures' expertise in digital assets gained through its ventures such as Zodia Custody and Zodia Markets, as well as its investments in companies like Ripple and Metaco. The Digital Asset Joint Venture plans to make investments ranging from seed to Series C funding.
Strategic Relationship Between SBI Holdings and SC Ventures
SBI Holdings CEO Yoshitaka Kitao expressed that the joint venture further strengthens the strategic relationship between SBI Holdings and SC Ventures. SBI Holdings has previously invested in SC Ventures' portfolio companies, including Solv, Zodia Custody, and Myzoi.
Partnership with the Dubai International Financial Centre (DIFC)
In May, Standard Chartered signed a memorandum of understanding with the Dubai International Financial Centre (DIFC) to collaborate in the digital asset space, particularly in digital asset custody. The Chief Business Development Officer at the DIFC, Salmaan Jaffery, congratulated SC Ventures and SBI Holdings on their first Digital Asset Joint Venture in the DIFC, emphasizing their contribution to shaping the future of finance.
The partnership between Standard Chartered's SC Ventures and SBI Holdings to establish a digital asset joint venture in the UAE marks a significant development in the growing fintech ecosystem of the region. By leveraging their expertise and capital, the joint venture aims to support companies operating in various aspects of the digital assets spectrum and contribute to the future of finance.
What are your thoughts on Standard Chartered's SC Ventures and SBI Holdings joining forces to set up a digital asset joint venture in the UAE? Let us know in the comments section below.
Frequently Asked Questions
What is the best way to hold physical gold?
Gold is money. Not just paper currency. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is that gold has historically outperformed other assets in financial panic periods. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, the liquidity that gold provides is unmatched. This allows you to sell your gold whenever you want, unlike many other investments. You can buy gold in small amounts because it is so liquid. This allows you to profit from short-term fluctuations on the gold market.
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). You must complete Form 8606 to open an account. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form must be submitted within 60 days of the account opening. You can then start investing once you have this completed. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. And, you have to make contributions regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. But, you'll only be able to purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
There are two main drawbacks to investing through an IRA in precious metallics. First, they're not as liquid as stocks or bonds. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose more money than you gain over time.
What does a gold IRA look like?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can buy physical gold bullion coins at any time. You don't have to wait until retirement to start investing in gold.
An IRA allows you to keep your gold forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs will inherit your gold, and not pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 However, you'll receive a higher interest rate if you put in more.
You'll have to pay taxes if you take your gold out of your IRA. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. If you do, you could face severe financial consequences.
What is the best precious metal to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if your goal is to make quick money, gold may not suit you. Silver is a better investment if you have patience and the time to do it.
If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads. Example. And Risk Metrics
Three ways to invest in gold for retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, cash in your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins can be sold much faster than paper certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. By investing in multiple assets, you can spread your wealth. This will reduce your risk and give you more flexibility in times of market volatility.
By: Kevin Helms
Title: Standard Chartered's SC Ventures Partners With SBI to Establish Digital Asset Joint Venture in UAE
Sourced From: news.bitcoin.com/standard-chartereds-sc-ventures-partners-with-sbi-to-establish-digital-asset-joint-venture-in-uae/
Published Date: Sat, 11 Nov 2023 07:30:51 +0000