Targeting Institutional Investors: SBI Holdings Is Buying a Minority Stake in B2C2 Exchange

A unit of Japanese financial conglomerate SBI Holdings, SBI Financial Services is buying a minority stake in London-based crypto market maker B2C2 for $30 million.

This is yet another example of situational-focused crypto players tying up with the incumbent institutions to offer additional services to their clients. Meanwhile, SBI will be getting a new source of revenue, “as a recession has hit their core income stream of local retail traders,” said Reuters.

B2C2 will be the leading liquidity provider of SBI as the latter expands its crypto offerings to millions of its existing customers. On the other hand, the digital asset trading firm will benefit from SBI’s distribution network and financial firepower.

SBI’s balance sheet will complement B2C2’s asset-liability framework “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,” said Max Boonen, founder of B2C2.

On-Ramp for Institutional Investment

In 2016, B2C2 launched the first crypto-native single dealer platform. Currently, it provides liquidity to banks, exchanges, and hedge funds.

The platform already has a license to operate in Japan, and last year, the firm launched the first OTC streaming price feed and is authorized and regulated by the UK’s Financial Conduct Authority.

SBI meanwhile is launching a fully automated facility, an electronic prime brokerage built upon its single dealer platform, to provide competitive two-way prices in the funding market. This capability will expand B2C2’s existing secured financing operation, already lending hundreds of millions of dollars.

“We expect a lot of synergies with B2C2, a firm which has a large number of clients globally and offers abundant liquidity, excellent price competitiveness, and a diverse suite of products for their customers,” said Yoshitaka Kitao, President and CEO of SBI Holdings.

“We will work to develop innovative new crypto products and deepen synergies across our group of companies.”

Competition is Heating Up

Prime brokers provide services to hedge funds and active trading firms, which is a growing trend in the crypto industry.

Earlier this month, Bakkt partnered up with Mike Novogratz’s Galaxy Digital to launch a “white-glove service” for “multi-billion-dollar” asset managers looking to buy and store bitcoin.

Last month, Genesis Capital acquired the London-based custodian, Volt, to join the likes of identity Digital Assets and BitGo and build the “preeminent prime brokerage in the digital currency ecosystem.”

A week after that, Coinbase announced that it is looking to acquire Tagomi, a crypto prime brokerage platform. The deal, however, hasn’t been closed yet and is subject to regulatory approvals.

The crypto industry is fast building the infrastructure for the institutional investors who are currently driving the bitcoin market.

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Author: AnTy

Industry Giants, BHP and Baosteel, Make First Iron Ore Trade for $14 Million Using Blockchain

Mining conglomerate, BHP Group has revealed that it has transacted a $14 million worth of iron ore trade through a blockchain-based platform which has been created by MineHub Technologies based in Canada.

The transaction involved BHP Group and China Baowu Steel Group, which is an offshoot of Chinese giant steelmaker China Baoshan Iron & Steel, which is mostly referred to as Baosteel.

Last month, BHP stated that it was in the process of piloting a blockchain-based iron ore trade with the Chinese conglomerate Baosteel.

In a statement shared exclusively with Bitcoin Exchange Guide, during the transaction process, BHP utilized the blockchain platform to process the contract terms virtually, exchange the documents as well as offer real-time cargo visibility.

The piloting of the blockchain-enabled trading by BHP is part of the firm’s plan to digitize its documentation procedures for its commodities trading fully. According to Michiel Hovers, who is BHP’s sales and marketing executive, the mining industry requires a paradigm shift when it comes to documentation. He said:

“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.”

Baowu Steel, which is state-owned, has previously invested in blockchain technology in efforts to digitize its trade. Last month, the firm conducted what it said was the inaugural blockchain-enabled yuan-denominated foreign letter of credit (LC) with another mining giant called Rio Tinto. The firm used the Contour platform that has been developed on Corda technology R3, which is an enterprise-focused blockchain solutions firm.

BHP’s journey in the blockchain space can be traced back to 2017 after Vitalik Buterin, Ethereum founder announced that the mining giant was developing a blockchain-based application that will help in tracking natural resources.

In February last year, the mining leader in partnership with a Japanese based shipping firm NYK successfully tested blockchain tech.

The Canadian-based MineHub Technology explained that the BHP testing was just one of the many in the pipeline, which will involve its blockchain platform. The firm also stated that the testing comes at an opportune time when various crooked characters are taking advantage of the supply chain uncertainties brought by the COVID-19 pandemic.

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Author: Joseph Kibe

South Korea’s SK Group Set to Launch a Donation Blockchain with Two Native Cryptocurrencies

Two tokens set to be launched by the third largest Korean conglomerate, SK Group, after local dailies report the development of a business blockchain. The conglomerate will launch the Social Value Coin (SVC) and the Social Value Power (SVP)

Local reports from South Korea confirm that SK Group, one of the largest conglomerates is planning to launch a new blockchain based platform for donations. The announcement further confirmed the launch of two tokens to facilitate the blockchain in development.

In a blockchain conference held in the country, a spokesperson from the IT subsidiary of the conglomerate, SK Corporation C&C, confirmed the plans to build its blockchain in the coming days. While the release date is yet to be announced, the report states the blockchain will utilize Ripple’s XCurrent solution.

Ripple from Ripple Labs will offer an efficient, instant and cheap system to transact anywhere across the globe. Consumers using the blockchain designed will have a direct, cheap and P2P transaction system for remittances and completely do away with middlemen.

The architecture will be open source and open to outside developers, with transaction terms customized by the counterparties. It will be centralized and will not depend on mining.

SK Group To Launch Two Donation Stable Tokens

The ‘SK Group’ blockchain will integrate two native token – each with its unique value to the network. The main token on the blockchain, the Social Value Coin (SVC), is a stable coin backed by Korean won in a ratio of 1:1, much like Tether and the dollar. The coin will be used mainly to make donations and make payments across the network.

The spinoff token, Social Value Power (SVP), is an incentive to making donations using the SVC token. The report states the payouts/distribution of SVP will be at a ratio of 1 SPV for every 1000 SVC tokens donated.

Late last year, the SK Group agreed to a deal with ConsenSys to build a business blockchain hub that will further development of blockchains in the company. The partnership is growing strong as reports indicate the conglomerate released $8.2 million USD in a fund managed by the blockchain firm.

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Author: Lujan Odera