SBI invest $9 millions in institutional- Grade Cryptocurrency Derivatives

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Japanese financial services giant SBI Holdings has invested $9 million in U.S. digital marketplace architect Clear Markets to fund the latter’s creation of a cryptocurrency derivatives trading platform built for institutional investors.

Nikkei Asian Review reports that SBI Crypto investment has obtained a 12% stake in clear markets, which is headquartered in Charlotte, NC and has branch offices in New York, London, and Tokyo. TgouTh the terms of the deal were not disclosed, the publication states that SBI likely paid 1 billion yen {$9 millions} for its minority ownership position in the company.

In funding clear markets, SBI aims to build a derivatives exchange that allows institutional investors to trade investment products tied to the price movements of Bitcoin and other Crypttoassets. Such products- which may include futures, options,and swaps-allow institutions to hedge other positions that they may have in the Cryptocurrency market, reducing risk and enabling them to lock in profits or mitigate losses.

Earlier this month, SBI became the first banking institution to directly launch a Cryptocurrency exchange. That platform, VCTRADE, serves Japanese retail investors.

Previously, SBI- which has formed a close partnership with U.S. blockchain startup Ripple- led funding rounds in several large Cryptocurrency exchanges, including the Tokyo- headquartered bitFlyer and the San Francisco- based Kraken.



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