Japan’s SBI Holdings To Launch Crypto Derivatives Platform

Investing, News | August 2, 2018 By:

Japanese financial services giant SBI Holdings has acquired a 12 percent stake in digital marketplace developer Clear Markets to expand its crypto business portfolio. The terms of the deal were not disclosed.

Based in the United States, Clear Markets is a developer and operator of electronic marketplaces and trading technologies. It has extensive experience building and operating electronic trading systems for complex fixed income and credit derivatives in the world’s major financial centers.

Last year, SBI Holdings announced plans to create a crypto-based financial ecosystem. In June of this year, the firm became the first banking institution to directly launch a cryptocurrency exchange. Called VCTRADE, it is one of the 16 government-approved crypto exchanges in Japan. SBI has also made a number of investments in crypto and blockchain startups, including OwlTing, Templum, Lancium Technologies, and CoolBitX, among others.

Through the Clear Markets partnership, SBI aims to create a derivatives trading platform that allows institutional investors to trade investment products tied to the price movements of bitcoin and other cryptocurrencies. Clear Markets will reportedly provide hedging for crypto swap transaction services which is “necessary for the handling of cryptocurrencies and financial instruments that use cryptocurrencies.”

“As a provider of electronic trading platforms, Clear Markets has obtained approval… in Japan, the United States, UK…and is planning to launch the swap trading service of digital asset including virtual currency in future,” SBI said. “We believe that these efforts will greatly contribute to the development of SBI Group’s digital asset ecosystem.”