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Japan’s SBI Group Is Launching a Cryptocurrency Exchange Platform

Various investment banks including J.P. Morgan, Goldman Sachs, Morgan Stanley and NASDAQ revealed on their plans to unveil cryptocurrency exchanges in 2018. SBI Group, ranked among the most prominent financial companies in Japan, have finalized their plans to unveil a cryptocurrency exchange this summer.

Kitao Yoshitaka, the president and CEO of SBI holdings noted that the SBI group would transform its cryptocurrency exchange into Japan’s significant cryptocurrency trading platform and dominate the market, reported Business insider Japan.

If we accomplish this, it will emerge the best quickly and even when a large number of customers trickle in; we can create a system that can manage it comfortably. However, we have to pursue safety thoroughly.” a translation of Yoshitaka’s statement read.

Kitao and other researchers at SBI Group understand quite well that the demand of both digital currencies and volumes of various exchanges have decreased drastically since December 2017 when the market emaciated.

Therefore, Yoshitaka’s assurance in dominating the Japanese cryptocurrency exchange market does not stem from resources and capital SBI holdings have, but mainly because most financial institutions have ascertained the profits generated from cryptocurrency exchanges.

According to Yuji Nakamura, a Japanese based technology reporter, before Coincheck was hacked, the platform had generated over $150 million in quarterly profits outshining Deutsche Bank, German’s largest bank.

Before Coincheck was hacked, it had made as much money as TSE that currently runs Japan’s stock and future market. As per my perception, Coincheck could manage to fetch between $6-8 million valuations,” said Nakamura

Currently, SBI Holdings is worth $6 billion, and if the statistics of Nakamura are right, then Coincheck’s valuation could have outshined that of SBI holdings.

Banks and other financial institutions are entering the crypto market because cryptocurrency exchange platforms have earned more profits than banks.

As per SBI holdings, the financial institution concentrated on rebuilding trust with Japan’s investors. Just after the February correction that saw the price of Bitcoin at $6,000, the investors lost both trust and confidence in the market and finally the Japanese digital currency exchange market by half.

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