Japanese financial firm SBI Holdings has agreed to take a $30 million minority stake in institutional cryptocurrency trading platform B2C2.
- Under the deal the two entities will launch a strategic partnership under which B2C2 will provide crypto liquidity for SBI, which is planning to grow its crypto offering to "millions of existing customers," per an announcement Wednesday.
- B2C2 is launching an electronic prime brokerage based on its single dealer platform. This would benefit from SBI’s distribution network and financial muscle, B2C2 said.
- The trading firm also plans to launch an automated financing facility in coming weeks to provide "competitive two-way prices in the funding market."
- The move primes U.K.-headquartered B2C2 to become the next big prime broker in the crypto space, with its new Japanese partner being able provide support for lending and custody services.
- "B2C2 will benefit from SBI’s balance sheet, which is far larger than anything committed to the crypto market to date. It will complement our asset liability management framework ... to deliver an execution platform that will not only be a game changer in crypto, but also positions us to expand across asset classes as we set our sights on the $20 billion-a-year prime brokerage market," B2C2 founder Max Boonen said.
- The crypto prime brokerage space is heating up, with companies such as Coinbase, BitGo and Genesis Trading all recently announcing plans to enter the space. Prime brokers finance and facilitate trades for institutions.
- SBI Holdings is involved in a number of cryptocurrency initiatives, having launched a banking app in partnership with Ripple.
- SBO Holdings recently announced it would launch a crypto fund, with XRP comprising 50% of its portfolio. The financial firm further has a joint venture with blockchain software provider R3.