• SBI Holdings buying 12% of Clear Markets
  • Firm has plans to introduce a crypto derivatives platform
  • Clear Markets will offer hedging for crypto swap deals

SBI Holdings, a huge financial services firm from Japan, is expanding its cryptocurrency business portfolio by buying a 12% share in US-based Clear Markets. This is according to the company’s financial results published on Tuesday.

The firm plans to buy as much as 20% of Clear Markets in the future. The latter is a developer and operator of electronic trading platforms that provides electronic trading services to over-the-counter derivatives in the United States, Britain and Japan.

SBI’s investment in Clear Markets forms part of an endeavor to establish a trading platform for cryptocurrency derivatives that is aimed at the institutional market. The platform will enable financial organizations to trade on the cryptocurrency derivatives market more smoothly.

Clear Markets will offer hedging for crypto swap deal services that is “necessary for the handling of cryptocurrencies and financial instruments that use cryptocurrencies”.

According to SBI Group, an increase in the usage of cryptocurrencies and their derivatives will boost liquidity in the market. The deal is estimated to be worth about $9m.

Clear Markets is an affiliate of QUICK Corp., a subsidiary of Japan’s Nikkei Inc. Clear Markets has attained a Swap Execution Facility license from the US Commodity Futures Trading Commission and derivative brokerages in Britain and 32 European nations. It plans to establish a cryptocurrency swap trading service.

SBI has supported investment in well over 20 crypto-related deals in the last year.

Japan is currently a world leader when it comes to cryptocurrency adoption. Clear Markets CEO Mark Brickell pointed out that “as much as 50% of cash trading in cryptocurrency has taken place in the country”.

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