Japan's financial conglomerate SBI Holdings has signed agreements to acquire full control of the crypto exchange Bitbank through a 46.7 billion Japanese yen ($289 million) transaction. This deal, first disclosed in May, will combine Bitbank with SBI's existing exchange SBI VC Trade, creating the country's biggest crypto exchange by assets under custody and account numbers.
On Thursday, SBI announced that its wholly owned subsidiary SBICAH will acquire shares from Bitbank CEO Noriyuki Hirosue and other shareholders before subscribing to a third-party share allotment. The exchange will then buy back shares held by MIXI and Ceres, leaving SBI with 100% indirect ownership. SBI expects the transaction to close around October, subject to regulatory clearance.
Combined entity dominates Japanese crypto market
The acquisition brings together two major Japanese crypto exchanges. Bitbank, founded in 2014, has been a regulated exchange in Japan since 2017. It offers trading in several cryptocurrencies, with daily volume hovering below $50 million for most of the last four months, according to CoinGecko data. Volume is dominated by the BTC/JPY pair (39.5%), followed by XRP/JPY and ETH/JPY (both at 19.7%). SBI VC Trade, launched in 2017, has also been a significant player under the SBI umbrella.
SBI said combining the two exchanges would give the group about 1.1 trillion yen in assets under custody and roughly 2.92 million crypto accounts, based on figures from the end of April. The company stated that the combined business would rank first among Japanese crypto exchanges by assets under custody and among the largest by account numbers. This scale gives SBI a powerful distribution channel for its expanding digital asset products.
SBI's broader digital asset strategy
The Bitbank deal is the latest in a series of moves by SBI to build comprehensive digital asset infrastructure, including crypto trading, stablecoins, and tokenized financial markets. SBI Holdings, led by Yoshitaka Kitao, has been a pioneer in Japan's crypto space, investing in Ripple, launching investment funds, and pushing for regulatory clarity.
In February, SBI and Startale Group unveiled Strium, a layer-1 blockchain designed to support around-the-clock trading and settlement of tokenized equities and real-world assets. This blockchain aims to provide a regulated environment for institutional-grade digital assets, potentially attracting traditional financial players in Japan.
On Wednesday, SBI and Startale launched the yen-pegged stablecoin JPYSC. The token is issued by SBI Shinsei Trust Bank and distributed by SBI VC Trade. The stablecoin is initially limited to transfers within SBI VC Trade accounts, while public blockchain circulation will roll out after resolving outstanding legal and tax conditions, according to SBI. This move positions SBI to compete in the growing stablecoin market, which regulators in Japan have been actively shaping.
The same day, Ripple and SBI Group launched the dollar-backed Ripple USD (RLUSD) stablecoin in Japan also through SBI VC Trade. At launch, RLUSD became available to institutional and retail customers after receiving approval under Japan's regulatory framework for foreign-issued stablecoins. This launch underscores SBI's long-standing partnership with Ripple, which dates back to 2016 when SBI formed a joint venture with the company.
Japan's crypto regulatory landscape
Japan has been one of the most progressive yet cautious countries when it comes to cryptocurrency regulation. After the Mt. Gox collapse in 2014, Japan became one of the first nations to implement a licensing system for crypto exchanges under the Payment Services Act. The Financial Services Agency (FSA) oversees exchanges and has gradually allowed more activities, including margin trading and stablecoin issuance.
In 2022, Japan passed a law to regulate stablecoins, requiring issuers to be licensed trust banks or similar entities. This regulatory clarity has encouraged major financial institutions like SBI, Mitsubishi UFJ Financial Group (MUFG), and Nomura to enter the stablecoin space. SBI's yen-pegged stablecoin JPYSC is one of the first to launch under this framework.
The acquisition of Bitbank also aligns with Japan's push to digitize its financial system. The country's securities regulator has been exploring tokenized securities, and SBI's Strium blockchain is positioned to support these initiatives. By owning both a top exchange and blockchain infrastructure, SBI can offer end-to-end services for digital assets.
Market implications of the deal
The creation of Japan's largest crypto exchange through the SBI-Bitbank merger is likely to intensify competition among other Japanese exchanges. Major rivals include bitFlyer, BitPoint, and Coincheck, each with significant user bases. bitFlyer, once the largest, has faced challenges since its parent company's bankruptcy in 2019. Coincheck was acquired by Monex Group in 2018 after its hack.
SBI's combined exchange will have a clear advantage in scale, allowing it to offer more competitive fees, better liquidity, and a wider range of services. The integration of stablecoins and tokenized assets could attract institutional investors looking for regulated exposure to digital assets. Japan's pension funds and insurance companies have been slowly exploring crypto, with the Government Pension Investment Fund (GPIF) recently requesting information on bitcoin and gold as investment options.
The deal also highlights the trend of traditional financial institutions consolidating the crypto exchange sector. In the United States, firms like Goldman Sachs, Fidelity, and BNY Mellon have expanded into crypto custody and trading. In Japan, SBI's move mirrors similar acquisitions by other financial groups, such as Monex Group's purchase of Coincheck and Yahoo Japan's investment in bitFlyer.
However, the deal comes at a time of moderate market activity. Bitcoin and Ethereum prices have been relatively stable in the second quarter of 2026, trading around $59,000 and $1,600 respectively. Altcoins like XRP and DOGE have seen mild gains, while newer tokens like HYPE have surged. The volume on Japanese exchanges has not grown as fast as in previous cycles, partly due to cautious retail investors and regulatory constraints on leverage.
SBI's move to acquire Bitbank may stimulate more trading activity by offering new products, such as staking and yield-bearing accounts linked to stablecoins. The company has also been expanding its services for institutional clients, including over-the-counter trading and asset management.
Conclusion of the expansion
The acquisition is expected to close by October, pending approval from the FSA and other regulators. SBI has not disclosed any plans for rebranding the combined exchange, but it is likely to operate under the SBI brand to leverage the conglomerate's reputation. The integration process will involve merging technology platforms, customer accounts, and compliance systems.
SBI's CEO Yoshitaka Kitao has long advocated for a comprehensive digital asset ecosystem in Japan. In previous statements, he emphasized the importance of regulated stablecoins and blockchain-based infrastructure to compete globally. With the Bitbank acquisition, SBI now has the scale to realize that vision, positioning itself as a one-stop shop for digital assets in the world's third-largest economy.
Source: Cointelegraph News