Japanese financial conglomerate SBI Holdings Co., Ltd announced a joint investment in Singaporean crypto exchange Coinhako.
The investment is part of SBI’s strategy to venture into international markets.
Adoption of crypto assets in Singapore
Reports show 93% of all Singapore’s citizens know about crypto. 43% of young Singaporeans own some. The positive adoption is attributed to successful Central Bank Digital Currency (CBDC) trials, clear regulations, license exemptions, and wide media coverage of cryptocurrency adoption from private banks.
Despite the thriving crypto market, Binance Asia Services Ltd., the Singapore affiliate of the world’s largest crypto exchange by trading volume, recently withdrew its application to run an exchange in Singapore.
The cryptocurrency wave is big in Singapore, influencing many investors to explore opportunities in the region. In the notice, Coinhako expressed interest to expand their business to other countries, “We are planning to expand our business to other countries in Southeast Asia.”
Coinhako is one of the largest crypto exchanges in Singapore with the highest number of customers. It provides a wide range of crypto assets, such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), XRP, etc.
It was the first crypto exchange to be licensed and approved by the Monetary Authority of Singapore (MAS). The financial authority recently suspended the license of Singapore’s Bitget exchange. The exchange was accused of allegedly violating intellectual property rights by promoting Army Coin, named after a popular boy band BTS’s followers.
Fund will support investment destinations
SBI’s latest investment was made through SBI-Sygnum-Azimut Digital Asset Opportunity Fund.
“The fund leverages the in-depth expertise of both the Group and the Sygnum Banking Group, which are pioneers in the field of digital assets, to complement digital assets, financial services, and fintech, as well as the networks of both companies across Asia and Europe.
“In Europe, we plan to make venture investments focused primarily on financial market infrastructure and enterprise solutions related to DLT,” stated SBI
In a bid to become one of the largest digital asset exchanges in the world, SBI says that it will support “investment destinations that provide cutting-edge and high-level legally compliant services, and will work to develop a sound cryptocurrency market.”
In addition, the fund will support promising early-stage startups with innovative technologies such as digital-asset-related companies.
The SBI-Sygnum-Azimut Digital Asset Opportunity Fund was formed in Singapore in 2021. It consists of crypto assets, decentralized Ledger Technology (DLT) infrastructure, and distributed ledgers mainly in Europe and Southeast Asia.
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