Japanese financial services giant SBI Holdings will expand its crypto business portfolio by acquiring a 12 percent stake in Clear Markets, according to SBI’s financial results report published on July 31. SBI is scheduled to acquire up to 20 percent in the future.
SBI Crypto Investments is a subsidiary of SBI Holdings, which is itself a subsidiary of SBI Group, which is a financial conglomerate with a market capitalization of $5.9 billion. The purpose of SBI Crypto Investments is to make investments to advance the cryptocurrency-based ambitions of SBI Group.
Clear Markets makes and sells electronic trading software. Clear Markets is an affiliate of a company called QUICK Corp, which is itself a subsidiary of Nikkei of Japan. QUICK Corp operates a financial information distribution system, which Clear Markets uses to distribute its trading system. Clear Markets is headquartered in Charlotte, and has offices in Tokyo, London, and New York.
SBI’s new stake in Clear Markets is part of an effort to create cryptocurrency derivatives trading platform catered toward to institutional investors. The platform will reportedly allow financial institutions to trade more smoothly on the crypto derivatives market.
The value of this market is estimated to be more than $1 quadrillion, or considerably greater than the gross domestic product of the entire world combined, according to CoinJapan.
Japan is one of the leading countries in terms of cryptocurrency adoption. According to Clear Markets chief executive Mark Brickell, “as much as 50 percent of cash trading in cryptocurrency,” has taken place in the country.
Last week, the Japan Virtual Currency Exchange Association (JVCEA) announced it will require its exchange members to place limits on the trading activity of some clients in an attempt to prevent investors with “small assets” from suffering losses.