Japan’s SBI Group Partners With China’s Huobi To Launch Two Cryptocurrency Exchanges in Q1
In a continuing trend, Chinese exchanges are expanding their activities away from the mainland to avoid regultions.
Japan’s internet-based financial institution SBI Group has entered into a partnership with China’s Huobi Group to launch two virtual currency exchanges. The one will probably be named “SBI Virtual Currencies,” and the other “Huobi Japan.”
Under the agreement, the two leading exchanges will combine their platforms to establish a cutting-edge cryptocurrency-related business in the Asian region by utilizing Huobi’s “technology, know-how and human resources.”
SBI President & CEO Yoshitaka Kitao commented on the deal:
“In addition to the digital assets exchange platform, the Group (Huobi) has applied its advantages of cryptocurrency-related technologies, know-how and human resources to develop its business in various fields such as information and research service business, wallet services for cryptocurrency management, etc.”
He added that Huobi operates globally and has offices in Singapore, Hong Kong, Korea and Japan, creating an attractive synergy between the two groups because of their familiarity with the region.
Solid Experience In Blockchain Space Is Backbone Of Agreement
According to SBI, Huobi has established a solid experience in the blockchain technology space which has been the basis for the basic agreement. It added:
“SBI Holdings has reached a basic agreement with Huobi Group (1.65 million accounts, maximum daily transaction volume of over CNY 30 billion (approximately JPY 510 billion)), which has a track record of stably operating a major cryptocurrency exchange in China, to explore the following alliances.”
The partnership also allows SBI Group to 30% of equity in Huobi Group’s Japanese entity, Huobi Technology Japan Co., Ltd., and 10% of equity in Huobi Group’s Korean entity, the Huobi Co., Ltd.
On the flipside, Huobi Group can acquire 30% of equity in SBI Virtual Currencies, a subsidiary of SBI Holdings.
SBI Forms Consortium With Japanese Credit Cards To Utilize Blockchain
News of a plan by SBI Holdings and its subsidiary SBI Ripple Asia to create a ‘consortium’ with several Japanese credit card companies to use the blockchain technology, has pushed prices of Ripple to a 20 percent rise in late December.
A partnership between Ripple and SBI Holdings in January 2016 paved the creation of SBI Ripple Asia. However, SBI did not mention any role Ripple will play in the new consortium.