SBI Financial Services has bought a minority stake in digital assets trading firm B2C2 for $30 million.
The firms say the investment marks the start of a strategic partnership between one of the largest institutions to have ventured into the crypto market and a veteran digital asset trading firm. SBI, owner of Japan’s first digital bank and largest online brokerage, is listed on the Tokyo Stock Exchange and is a member of the Topix stock index.
B2C2 will become SBI’s main liquidity provider as SBI expands its crypto offering to its customers. B2C2 will also benefit from SBI’s distribution network as it launches an electronic prime brokerage service built upon its single dealer platform.
This month, the firm says it will also release a fully automated facility “to provide the most competitive two-way prices in the funding market”, and by doing so expand its existing secured financing operation. B2C2 will continue to develop its offering until it constitutes a complete cross-asset prime brokerage business, the firm says.
“We expect a lot of synergies with B2C2, a firm which has a large number of clients globally and offers abundant liquidity, excellent price competitiveness, and a diverse suite of products for their customers,” says Yoshitaka Kitao, president and CEO of SBI Holdings. “We will work to develop innovative new crypto products and deepen synergies across our group of companies.”
Max Boonen, founder of B2C2, adds, “Today’s deal with SBI takes B2C2 a big step forward. Having claimed the top spot in our segment thanks to the technological edge of our single dealer platform, we found in SBI the right partner to unlock the next drivers of our growth. 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 – the most sophisticated in the market – 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 $20bn-a-year prime brokerage market.”