Ripple Partner, SBI Group, Looks to Form Crypto Joint Venture to Boost Revenue
Tokyo-based financial giant SBI Holdings has opened up talks with various international financial institutions to form a crypto joint venture. The firm revealed that it aims to make the crypto business one of its main pillars.
Speaking to Reuters, Yoshitaka Kitao, SBI CEO, revealed that the bank is in talks with numerous financial institutions to set up a crypto venture. Kitao also stated that SBI has already secured two plausible deals but remained coy on the details. The CEO stated that part of the initiative is to pursue mergers and acquisitions.
To enhance its presence in the crypto space, SBI bought TaoTao, a Japanese-based crypto exchange, last year. Kitao explained that the merger and acquisition strategy does not involve taking the minority stakes but partnering with top crypto companies worldwide.
Ripple partner SBI Holdings has witnessed a big jump in profits from its crypto wing for the year ending December 2020. The financial conglomerate’s crypto pretax profit stood at $64 million, which increased 83% compared to 2019. Kitao explained,
“To be number one in the world, our choice is purchasing a leading firm or allying with major global companies. Our merger and acquisition strategy will not be something like taking minority stakes in many companies. Investors once lived in the world where they invested in stocks or bonds; it’s not an either-or situation anymore.”
Kitao also elaborated that institutional interest in crypto assets is rising, which presents a huge opportunity for SBI. He added that institutional investors, mostly hedge funds, are flocking the crypto market, presenting an opportunity for mergers and acquisitions. He also cited that renowned investors like Elon Musk are taking an interest in the crypto industry.
In December last year, SBI purchased cryptocurrency trading outfit B2C2, and the firm is looking to add more.
SBI Holdings is the largest online brokerage firm in Japan and has been offering crypto trading services since 2018.