Japan's SBI Group to launch first bank-backed digital currency exchange

According to foreign media reports, Japanese financial services group SBI will launch the first bank-backed digital currency exchange.

SBI announced today that it is establishing a new company called SBI Crypto, which will be headquartered in Tokyo.

The company, which will provide trading services for an as-yet-undisclosed digital currency, is understood to have received 300 million yen (about $2.8 million) in funding.

While no launch date has been announced, SBI said it will officially launch the company next month and will provide updates on specific services on the exchange.

According to the statement, the company said it is seeking to capture “new value asset management opportunities.” SBI also cited Japan’s positive regulatory environment as a driving factor behind the launch of its digital currency exchange.

The plan represents SBI’s most aggressive move to date in the digital currency and blockchain space.

Previously, SBI Holdings participated in Ripple’s $55 million Series B funding round and invested in a Japanese bitcoin exchange bitFlyer through its venture capital subsidiary. In addition, SBI previously announced that it was working with Ripple to create a new joint venture.

In addition to the investment, SBI has also partnered with other Japanese financial firms to test blockchain applications in areas such as currency settlement and digital banking.