Cross-border growth predicted for Standard Chartered in the first half of 2025, despite varied tariff implications
In the ever-evolving world of global finance, Standard Chartered is making strategic moves to adapt to changing market conditions. The bank's focus on stablecoins and cross-border income is a testament to this adaptability.
The growing demand in Asia markets and improvements in both flow and episodic income have contributed to a significant growth in Standard Chartered's global markets. The shift in cross-border income is largely due to the impact of US tariffs, leading to a drop in the cross-border income share for Transaction Services from 64% to 58%.
Businesses are incorporating stablecoins into their payment strategies to enable faster, cost-efficient, and borderless transactions. This involves setting up custody and wallet infrastructure, leveraging APIs and reconciliation systems, ensuring regulatory compliance, and potentially partnering with fintechs or payment providers for access to liquidity and local on/off-ramps.
The key ways businesses are incorporating stablecoins include cross-border payments, supplier and vendor payments, eCommerce payments, payroll and remittances, and infrastructure and compliance needs. Companies like Visa are focusing stablecoin strategies on emerging, cash-rich markets to digitize payments where traditional electronic payments are less prevalent.
In the first half of 2025, Standard Chartered's cross-border (network) income for its Corporate and Investment Banking (CIB) division reached $3.8bn, a 4% Year-on-Year (YoY) increase, or 9% excluding interest rate impact. The CIB division saw a 9% increase to $3.3bn in Q2 2025, accounting for around 60% of the company's operating income.
Global Markets was a key driver of growth for Standard Chartered, with a 47% rise in income to $1.2bn in Q2 2025. The company's CEO highlighted the digital asset strategy, including serving as a bridge for traditional finance clients to utilize stablecoins.
The Corporate & Investment Banking division also reports greater demand for hedging and risk management products from corporate clients. In a recent CIB investor day, Standard Chartered announced it was targeting 70% of CIB income to come from cross-border, meaning it still has some way to go to achieve this goal.
In addition, there has been increased demand for FX and commodity trading in Asia, and CIB saw a 17% increase in intra-ASEAN corridor income due to shifting supply chains. Standard Chartered is also seeing interest in the use of stablecoins by logistics operators for real-time payments.
The bank's Global Banking share of cross-border income has risen from 13% to 14%, and it has already launched several digital asset-related initiatives. Flow income saw a 22% rise attributed to FX income and higher rates, while episodic income saw particular gains as a result of tariff-related volatility at the start of Q2.
In conclusion, Standard Chartered is strategically positioning itself to leverage stablecoins for efficient global payments, vendor settlements, commerce, and payroll, with a growing emphasis on emerging markets and regulatory readiness. The bank's focus on cross-border income and digital assets is a response to market shifts and a strategic move to stay competitive in the ever-evolving world of global finance.
Businesses, following Standard Chartered's lead, are progressively incorporating stablecoins into their investment strategies for more efficient cross-border payments, aiming to reduce costs and enable borderless transactions. The bank's focus on stablecoins and cross-border income, accompanied by strategic digital asset initiatives, reflect a response to market shifts and an intent to stay competitive in the evolving world of global finance and technology.
