Japanese financial conglomerate SBI Holdings has unusually intensified its pace of investments in the cryptocurrency sector. In recent weeks, the group was the sole investor in Gauntlet’s US$ 125 million Series C round and EDX Markets’ US$ 76 million Series C round.
The list of moves is long. There was the deal to buy Japanese exchange Bitbank for about US$ 289 million, the majority stake in Singapore-based Coinhako, and investments in Digital Asset, Morpho, and the presale of Circle tokens aimed at the Arc blockchain. The group also launched JPYSC, the first yen stablecoin backed by a fiduciary bank in the country.
Present in the sector since 2016, SBI now appears to be pursuing something broader than price exposure. The thesis is to build financial rails.
"At SBI Group, we are driving the on-chain transformation of the entire group and expanding our digital asset businesses, while striving to reach our next stage of growth," said a company spokesperson, who describes the arrival of the token economy as imminent.
For Joseph Goh, head of the Asia-Pacific region at consultancy Areta, the ambition has no regional parallel. "SBI is doing something that no other financial group in Asia has attempted: building an end-to-end digital asset franchise, spanning issuance, settlement, market infrastructure, asset management, and retail distribution, and doing so across borders rather than just in the domestic market," he said.
The timing has a regulatory explanation. Japan is advancing a proposal that classifies cryptocurrencies as financial instruments, paves the way for ETFs, and provides for a cut in the maximum capital gains tax from 55% to 20% starting in 2028.
Executives consulted on the subject also note that periods of weak markets usually offer lower valuations and less competition for good assets. "Execution is the real test," Goh cautioned, pointing out that integrating regulated exchanges such as Bitbank and Coinhako reduces part of the risk, although returns depend on the pace of institutional adoption.