Japan’s top brokers compete with crypto-native exchanges for market share

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According to a study by Messari, the top three online brokerage firms in Japan are seeing increasing sales of their cryptocurrency exchange services.

In his report on Asian crypto landscapes, Messari noted that the operating revenues and net worth of the exchange platforms operated by Japan’s leading securities brokers are fast matching that of their crypto-native competitors.

Comparing Net Assets and Operating Income Between Exchanges Run By Crypto Native Firms And Online Stock Brokers In Japan, August 2020: Messari

Messari researcher Mira Christanto tweeted that Japan’s three largest brokers by customer deposit – SBI, Rakuten, and Monex – operate crypto exchange platforms.

Christanto also noted that many large asset managers are campaigning with Japanese lawmakers to allow them to offer advanced cryptocurrency services and products such as custody solutions and exchange-traded funds.

“Big asset management funds are campaigning for the government to allow custody and ETFs. If they get the green light, the banks will be waiting on the sidelines to join in. “

The report commends Japan’s leading financial regulator, the Financial Services Agency (FSA), for longstanding support for inclusive crypto regulations and establishes the island nation as a regional hub for the digital assets industry.

Messari identified 26 digital currency exchange licenses that have been issued since regulation in April 2017. BitFlyer is currently the largest Japanese exchange with over $ 1 billion in assets under custody and a net worth of $ 146 million as of August 2020 research.

Additionally, Japan’s institutional-grade Liquid Exchange was listed in the top ten crypto unicorns list by the end of 2019 – with a valuation of more than $ 1 billion.

The report also notes that a large number of high profile mergers and investments have occurred in the Japanese crypto industry.

In April 2018, the large exchange Coincheck was taken over by the online brokerage company Monex Group. In October 2019, Financial Products Group, a publicly traded financial services company, invested in Huobi Japan.