Japanese Financial Giant Backs Crypto Derivatives Platform With New Investment

Japanese financial services titan SBI Holdings looks to be beefing up their crypto portfolio, grabbing a stake in trading platform developer Clear Markets - and there's more to come.

New Investment

SBI Holdings recently revealed via their financial results report, published on July 31 that the firm acquired a 12 percent stake in U.S.-based electronic trading platform developer Clear Markets. The Japanese firm is on track to acquire up to 20 percent of Clear Markets in the future.

Clear Markets develops and operates electronic trading platforms and offers over-the-counter derivatives and electronic trading services in Japan, the US, and the UK.

The Japanese firm’s stake in Clear Markets signals an effort to create a cryptocurrency derivatives trading platform aimed at institutional investors. The platform is geared to allow easier trading on the crypto derivatives market.

A Push Towards Crypto Derivatives

Clear MarketClear Markets will provide hedging for crypto swap transaction services, something “necessary for the handling of cryptocurrencies and financial instruments that use cryptocurrencies.” SBI Group noted in their report that the increased use of cryptocurrencies and crypto derivatives will increase liquidity levels.

While SBI holdings have not yet divulged the value of the stake, many in the industry speculate it could be worth about $9 million.

SBI Holdings has invested heavily in more than 20 crypto-related projects over the past year and welcomed the launch of their cryptocurrency exchange VCTRADE last July 17.

The firm also announced earlier this month their investment in Canada’s Lancium Technologies, which provides wind power to virtual currency “mines.” Crypto mining consumes large quantities of power, and SBI sees this investment as a way of lowering their environmental impact as a miner of cryptocurrencies.

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