A Japanese financial services group is set to launch the first bank-backed digital currency exchange.
SBI announced today that it is establishing a new company, dubbed SBI Virtual Currencies Co., Ltd., that will provide exchange services for as-yet-undisclosed digital currencies. The venture is being funded with 300m yen (roughly $2.8m USD at press time) in new capital, according to the firm.
While the launch date was not disclosed, SBI said it would officially form the company next month and will provide future updates as to the specific kinds of services the exchange will offer. The new company will be headquartered in Tokyo.
According to translated statements, the company said that it was moving to capture a “new value asset management opportunity”. SBI also cited positive regulatory conditions in Japan as a driving factor behind the decision to launch an exchange.
The plan represents what is perhaps SBI’s most aggressive move in the digital currency and blockchain space to date.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has ownership stakes in bitFlyer and Ripple.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.