SBI Holding, the Japanese financial services giant, plans to create a cryptocurrency derivatives trading platform. The company plans to expand its crypto business portfolio by acquiring a 12 percent stake in Clear Markets, and it is scheduled to acquire up to 20 percent in the near future.
Clear Markets is an electronic trading platform operator and developer based out of U.S. It offers over-the-counter derivatives electronic trading services in the U.K., Japan, and the U.S. SBI’s interest in Clear Markets is a step towards creating a cryptocurrency derivatives trading platform to cater to institutional investors.
The exchange platform will facilitate financial institutions to trade more smoothly on the cryptocurrency derivatives market. Clear Markets intends to provide hedging for crypto swap transaction services. This service is important for the handling of financial instruments that use cryptocurrencies and for the handling of cryptocurrencies. While the price of the stake has not been disclosed, it is likely to be worth around $9 million, according to Nikkei Asian Review.
Clear Markets also intend to launch a crypto swap trading service and get a swap execution facility (SEF) license from the U.S. Commodity Futures Trading Commission (CFTC). It also plans to launch a derivatives brokerage in the U.K. and 32 European countries.
According to Cointelegraph, in the past one year, SBI has invested in more than 20 crypto-related projects. The public version of its cryptocurrency exchange was launched by SBI Holdings on July 17.
In terms of cryptocurrency adoption, Japan is one of the leading countries to do so. Around 50 percent of cash trading in cryptocurrency has taken place in Japan as per the CEO of Clear Markets, Mark Brickell. Recently, the JVCEA mandated its member exchanges to place limits on the trading activity of some investors. This was an attempt to prevent investors with small assets from incurring heavy losses.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]