SBI holds talks with top financial firms to start a crypto joint venture

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Feb 15, 2021
  • This move seeks to expand SBI Holdings’ reach in crypto for more profitability.
  • The firm is discussing two deals regarding a crypto joint venture.
  • Apart from a joint venture, SBI Holdings is also looking into crypto-related M&A deals.

SBI Holdings Inc., a leading Japanese conglomerate, is mulling over entering into a cryptocurrency joint venture with multiple financial companies across the globe. A report unveiled this news on February 15, noting that the organisation has already started holding talks with several foreign financial firms. Reportedly, this move seeks to expand the company’s operations for more profitability.

The recent surge of cryptocurrencies such as Bitcoin (BTC) has provided firms with numerous investment opportunities. Per Yoshitaka Kitao, SBI Holdings founder, investors previously lived in a world that only dealt with investments in stocks and bonds. However, the arrival of the nascent asset class has transformed investing. As such, investors don’t have to pick between stocks or bonds anymore.

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To this end, Kitao said that SBI Holdings did not intend on being left behind. As such, the firm is currently having discussions, regarding establishing a joint venture business in crypto. However, Kitao remained tight-lipped when it came to disclosing the details of the firms the organisation seeks to partner with.

A prominent crypto bull

Explaining how the organisation intends to cement its position in the crypto market, Kitao said that SBI Holdings aims to make its upcoming crypto joint venture one of its key earners. On top of this, the company is considering making large-scale mergers and acquisitions in the crypto space.

He concluded by saying, 

To become number one in the world, our choice is buying a leading company or creating an alliance with major global companies. Our M&A strategy will not be something like taking minority stakes in many companies.

Reportedly, SBI Holdings has been pro-crypto for several years. For instance, the company has been providing crypto trading services since 2018. Apart from this, the organisation purchased Tao Tao crypto exchange in the past year, expanding its crypto portfolio. Additionally, the firm acquired a 90% stake in B2C2, a London-based crypto market maker. With this acquisition, SBI Holdings sought to attract institutional investors into the burgeoning crypto sector.

Moreover, the company launched a crypto arm “SBI VC Trade”. Through the SBI VC Trade Lending platform, the organisation lets BTC and XRP holders lend it funds in exchange for usage fees, which is calculated based on the duration and amount of crypto deposited.

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