Japanese financial services company SBI Group has revealed its plans to create a “new financial ecosystem based on cryptocurrency.” Eight different crypto-related businesses are being developed simultaneously including mining, hedge fund management, and a derivatives market.
Also read: Chinese Exchanges Seek Second Chance in Japan and Other More Crypto-Friendly Countries
New Financial Ecosystem Based on Cryptocurrency
Japanese conglomerate SBI Holdings announced its new cryptocurrency business plans on Thursday. At the company’s earnings results briefing session, President and CEO Yoshitaka Kitao detailed how the company is “pursuing synergies between [its] current financial ecosystem and [its] new financial ecosystem based on cryptocurrency.”
Japan's SBI Group Launching Eight Crypto Businesses Including Mining
The new financial ecosystem consists of eight cryptocurrency businesses: exchange platforms; hedge fund management; financing; mining; ICO and exchange platform rating information services; a derivatives market; remittance services; and transaction/payments services.
Each of the above businesses “will be developed simultaneously to pursue synergy and mutual evolution,” SBI Group wrote.
New Crypto Businesses
The company’s presentation outlines the details of each business it is launching.
Japan's SBI Group Launching Eight Crypto Businesses Including MiningThe group plans to establish “a dominant cryptocurrency exchange platform, amid other platforms, based on the ‘customer-centric principle’.” Its domestic cryptocurrency exchange was among the first eleven bitcoin exchanges in Japan to receive registration from the country’s Financial Services Agency (FSA) last month. SBI Group is also preparing to establish a cryptocurrency exchange platform in Hong Kong. The company wrote:
Currently waiting for the appropriate timing to start the [exchange] service, where the key decision factors are the progress of SBI Crypto’s mining, along with the division situation of [the upcoming] hard fork.
Japan's SBI Group Launching Eight Crypto Businesses Including MiningMining is a key business area that SBI Group is venturing into. Citing a 51% attack risk from miners controlling the majority of the network’s mining power, the group announced that it will “acquire cryptocurrency share through mining, in order to stabilize the market.”
In addition, SBI Group plans to contribute to “market stabilization by providing new trading opportunities in cryptocurrency for institutional investors,” by creating a crypto derivatives market and manage crypto hedge funds. The company wrote:
In order to stabilize the volatility in virtual currencies, the participation of institutional investors who make long-term investments are expected.
The group already has a remittance business through a subsidiary called SBI Remit which utilizes Ripple. In May of last year, SBI Ripple Asia was established to bring out a “remittance revolution” in Asia.
Japan's SBI Group Launching Eight Crypto Businesses Including MiningThe last two businesses concern initial coin offerings (ICOs). The group’s finance business will promote “ICO and cryptocurrency bond issuance by companies specialized in cryptocurrency finance,” starting around Spring 2018.
In addition, SBI Group plans to manage a cryptocurrency portal site that provides crypto-related and ICO rating information. Earlier this month, news.Bitcoin.com reported on Morningstar Japan initiating Japan’s first ICO rating business. SBI Group is the largest shareholder of Morningstar Japan, holding 49.54% of the company’s shares.
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