A subsidiary of Japanese popular investment company, SBI will be acquiring a multi-million dollar stake in institutional cryptocurrency trading company, B2C2. The SBI-B2C2 partnership intends to expand operations to provide several other services on the purpose of becoming a crypto-asset prime broker.
SBI-B2C2 partnership minority stake worth $30 million
On July 1, a press release revealed that SBI Financial Services had acquired a minority stake in digital currency trader, B2C2. The investment is worth $30 million to be precise. Also, this marks the beginning of a new strategic partnership between the crypto trading company and the Japanese investment giant.
As SBI acquires B2C2’s minority stake, the formed partnership will enable the crypto trading company to become the primary liquidity provider for SBI, as it looks to expand cryptocurrency offerings to its millions of users. On the other hand, B2C2 will leverage SBI’s financial firepower as it intends to become a crypto prime brokerage company.
The crypto trading company is popularly known for facilitating the execution of trades involving large amounts of money over-the-counter (OTC). B2C2 is planning to launch an automated facility in the coming month, to expand its existing financing operation, per the report. B2C2 said it would continuously improve its services until it becomes a full crypto prime brokerage company.
SBI-B2C2 acts as middlemen between institutional players and markets
Prime brokerage companies are seen as entities that facilitate a better trading experience. They serve as middlemen between institutional players and markets, enabling them access to different services such as consulting, custody, and more. The addition of prime crypto brokers has been thought to propel more institutional acceptance in the crypto space.
The announcement that SBI acquires B2C2’s minority stake is seen as a game-changer for the cryptocurrency Industry. Which emphasizing on the partnership with SBI, B2C2’s founder, Max Boonen, commented:
It will complement our asset-liability management framework – the most sophisticated in the market – to deliver an execution platform that will not only be a game changer in crypto, but also positions us to expand across asset classes as we set our sights on the $20bn-a-year prime brokerage market.