In December 2020, SBI set up a new subsidiary SBI Digital Markets. Based in Singapore, the company will target institutions to help with issuing bonds, stocks and alternative assets as security tokens in Southeast Asia, subject to regulatory approval. The news is that Siam Commercial Bank’s venture arm, SCB 10X, has invested in the company.
In Japan, organizations tend to be more open about the proportion of shares owned, but details were not disclosed in this case. SBI Digital Markets has a capitalization of 1.9 billion ($16.6m) and is an SBI Digital Asset Holdings subsidiary.
This isn’t the first time SCB and SBI have collaborated. Back in 2017, the two organizations worked together using RippleNet for cross border payments. Earlier this month, digital asset bank Sygnum announced a $90 million investment round in which both SBI and SCB 10X participated.
Both organizations have significant interests in blockchain and digital assets. SBI has collaborated with Sygnum for a fund that invests in blockchain and digital assets. Likewise, SBI 10X created a $50 million fund in February 2021. However, in October, the holding company announced a brand change to SCBx and a $600 million+ fund with CP Group to invest in blockchain, digital assets and fintech. It also spent $537m for a controlling stake in Thai crypto exchange Bitkub.
Meanwhile, SBI has several initiatives targeting digital assets. Also in Singapore, it’s partnering with Switzerland’s SIX for an institutional cryptocurrency and digital asset exchange. It’s developing the Osaka Digital Exchange and SBI Securities has partnered with MUFG’s blockchain platform Progmat for token issuance in Japan.