SBI Holdings is a giant Japanese financial service that has successfully invested $9 million in the U.S. Clear Markets that is a digital marketplace architect with an aim to fund the newly created cryptocurrency derivatives exchanging platform which is mainly developed for the institutional investors.
The sources, Nikkei Asian Review reports have confirmed that SBI Crypto Investment has witnessed a 12% stake in Clear Markets, headquartered in Charlotte, NC. It has his branch office in New-York, Tokyo as well as in London. However, the terms and conditions of the contract are not yet unveiled.
The publication depicts that SBI paid 1 billion yen ($9 million) for their minority ownership position in the company.
With the aim to fund in Clear Markets, SBI aims to capture a derivatives trading that will make the institutional investors’ exchange products of investment connected to the price movements of bitcoin and crypto assets.
These products which include varieties of options and swaps that will definitely help the institutions to secure high positions in the cryptocurrency market, this will also reduce the risk and allow them to stay in profits or ignore losses.
The problem faced by the institutional investors is the dearth of access to regulated custodians, the lack of cryptocurrency derivatives products because they have never placed themselves in a comfortable zone to allocate their capital in this developing industry.
The status quo reveals that currently U.S. is regulated with two exchanges namely ‘CBOE’ and ‘CME’ both of them are based in Chicago, this enables bitcoin unseen and future contracts. LedgerX, cryptocurrency trading platform grant institutional investors many different derivatives products including puts, calls day-ahead swaps but it has still to attract more authentic, logical and meaningful volume.
However, industry experts are confident enough that their time will change in the coming years especially because of the entry of new custodians in the market and also in the upcoming markets platform that has the potential to provide with maximum flexibility so that they can grasp exposure to crypto assets.
The month before, SBI became the first and foremost banking institutions to frankly introduce a cryptocurrency trading. The platform ‘VCTRADE’ provides services to retail investors in Japan.
The investment made by the SBI is worth noting and appreciating. It is better to say that these investment made in the institutional grade cryptocurrency derivatives platform will obviously come up with flying colors.