SBI Holdings, a major Japanese securities giant, has announced record-breaking profits from its cryptocurrency business while aiming to become the first exchange operator in Japan to list USD Coin (USDC).
Japan SBI Reports Record Crypto Profits of $415 Million in the 3rd Quarter
The company reported a remarkable 103.5% year-on-year increase in crypto-related revenues, reaching approximately 62.8 billion yen ($415 million) in the third quarter of its financial year. Pre-tax profits surged 787% from the previous year to around 18.1 billion yen ($119.6 million), fueled by a revitalized crypto market.
SBI Expands Crypto Offerings Amid Market Boom
SBI operates multiple crypto-related businesses, including the SBI VC Trade and BITPoint exchanges, as well as the mining firm SBI Crypto. Additionally, it owns UK-based liquidity provider B2C2 and Japan-based blockchain firm HashHub.
With the crypto market rebounding strongly, the company has capitalized on increased trading activity, boosting growth across its platforms.
As part of its expansion, SBI is set to acquire rival exchange DMM Bitcoin, with plans to migrate its customers to SBI VC Trade by March 8. This move is expected to increase the number of crypto wallets on SBI VC Trade to approximately 1.3 million, while BITPoint already manages around 400,000 wallets.
SBI has also been pushing for regulatory approval to list USDC in Japan. Following a November 2023 agreement with USDC operator Circle, the company has been working with Japanese regulators to introduce USDC pairings on its exchanges. Japanese exchanges have long faced restrictions on listing USD-pegged stablecoins, but SBI aims to be the first to break that barrier.
Also Read: Japan Considers Diversifying Reserves with Bitcoin Amid Nation’s Rise in Userbase
Japan’s Crypto Market Sees Bitcoin Boom
Beyond SBI’s success, Japan’s crypto industry has been witnessing a surge in Bitcoin demand, driven in part by US President Donald Trump’s pro-crypto stance. The bullish sentiment surrounding Bitcoin has led to extraordinary gains for companies with exposure to digital assets.
One standout is Metaplanet Inc., a Japanese firm that has modelled its Bitcoin investment strategy after Michael Saylor’s MicroStrategy. Over the past 12 months, Metaplanet’s shares have skyrocketed by more than 4,000%, making it the best-performing stock in Japan and one of the top gainers worldwide.
Bitcoin itself reached an all-time high of $109,241 on January 20, coinciding with Trump’s inauguration for a second term, before experiencing a pullback due to global trade uncertainties.
Japan’s Regulators Crack Down on Unregistered Crypto Exchanges
Even as Japan’s crypto industry expands, regulators continue to tighten oversight. The Financial Services Agency (FSA), Japan’s financial watchdog, has recently requested that Apple and Google remove five unregistered cryptocurrency exchanges from their app stores.
Japan has some of the world’s strictest crypto regulations, requiring all exchanges operating in the country to be registered with the FSA. This latest action reinforces the regulator’s commitment to ensuring compliance and protecting investors from unregulated trading platforms.
The Future of Japan’s Crypto Industry
As Japan’s crypto landscape evolves, SBI is positioning itself as a leader in the industry. With record-breaking profits, aggressive expansion plans, and a push to introduce USDC, the company is at the forefront of Japan’s digital asset market.
Meanwhile, growing Bitcoin adoption and increased institutional interest are further shaping the country’s crypto economy.
At the same time, regulatory scrutiny remains a key factor in determining the industry’s trajectory. While Japan’s FSA continues to enforce strict compliance measures, companies like SBI are working within the regulatory framework to drive innovation and mainstream adoption.
Also Read: Japan’s Govt Cautious on Bitcoin Reserves Amid Uncertainty, Prioritizes Safety and Liquidity