Key highlights:
- SBI Holdings snaps up a majority stake in Singapore-based crypto exchange Coinhako.
- Exact valuation for the deal is still under wraps, with MAS approving the acquisition.
- SBI Holdings is extending its footprint beyond Japan in a bullish expansionist model.
Japan-based financial conglomerate SBI Holdings has acquired a majority stake in Holdbuild, the parent company of Singapore’s leading cryptocurrency exchange Coinhako. The move brings SBI Holdings closer to its ambitious goal of expanding its range of cryptocurrency services beyond Japan into new jurisdictions in Southeast Asia.
SBI Holdings extends ties in Singapore with Coinhako acquisition
According to an official announcement, SBI Holdings disclosed that it received necessary approvals from the Monetary Authority of Singapore (MAS) to acquire Holdbuild and its subsidiary. Following regulatory approval, SBI Holdings acquired a majority stake in Holdbuild’s Coinhako, making the cryptocurrency exchange a consolidated subsidiary.
Source: SBI
Coinhako CEO Yusho Liu confirmed the acquisition, noting that joining the SBI Group is the “natural step” for the cryptocurrency exchange. However, the exact valuation of the deal remains undisclosed, with pundits predicting at least 50 million for the majority stake.
Founded in 2014, Coinhako is one of Singapore’s oldest cryptocurrency exchanges with over 400,000 users. The company holds a Major Payment Institution license from the MAS, aligning it with SBI Holding’s expansionist ambitions.
“Our group aims to create a global corridor for digital assets by connecting exchanges around the world, enabling investors worldwide to make optimal investments without being hindered by national borders or currency barriers,” said SBI Holdings President Yoshitaka Kitao.
SBI Holdings disclosed plans to position Singapore as a foundation for its expansion into the rest of Southeast Asia. The Japan-based company is backing the construction of a digital asset economic zone, but it is unclear if it will be domiciled in Singapore.
Furthermore, the company revealed plans to hold its pioneering overseas branch managers’ meeting in Singapore in the coming weeks, strengthening its ties with Singapore. Kitao noted that the acquisition comes amid the celebration of the 60th anniversary of the establishment of diplomatic relations between Japan and Singapore.
SBI has its sights on Asian dominance
Last month, SBI acquired Japan-based cryptocurrency exchange Bitbank for $289 million to consolidate its home base. SBI Group seized the moment to float Japan’s first trust bank-backed yen stablecoin, JPYSC, eyeing a raft of use cases, including tokenized securities and a cross-border payment utility.
SBI tested JPYSC’s utility in the settlement of tokenized securities in a recent proof-of-concept (PoC), racking up impressive successes. Furthermore, the Group carried out a second PoC, simulating near-instant settlement for subscriptions into tokenized Japanese equity funds.
Riding the wave of its successes, the financial conglomerate turned its sights to the rest of the Asian market. A deal with the Solana Foundation will enable SBI to provide robust on-chain financial markets for Asia, expanding the focus of a joint venture beyond Japan.
Meanwhile, other firms are racing to snag up market share in Southeast Asia. Recently, Bybit waded into Indonesia via the acquisition of local exchange Nobi, with Binance and Kraken making inroads into the region.