SBI Holdings’ $9 million investment favours institutional investors for cryptocurrency derivatives platform 20111
News
Ashmita Dutta
Aug 2, 2018 at 2:00 PM

SBI Holdings, a financial services organisation, made a huge $9 million investment to establish derivatives trading platform of cryptocurrency. The investment is directed towards the Clear Markets, a digital market space of the U.S. seeking to set up the trading platform. SBI Holdings has invested for setting up the cryptocurrency derivatives platform to benefit the institutional investors.

According to the report of Nikkei Asian Review, SBI Crypto Investment holds in Clear Market a 12% stake. The latter has it’s headquarter in Charlotte with branches in Tokyo, London and New York. The terms and conditions of the deal have remained undisclosed. However, the publication has revealed that an investment amount of 1 billion yen or $9 million was paid by SBI. This payment has been conducted for its ownership position in the organisation.

The primary motive behind this massive $9 million investment is the development of derivatives trading exchange. This facilitates trading of investment products by the institutional investors linked with the price variation of crypto assets and Bitcoin [BTC]. The list of assets involve options, futures and swap, thereby, permitting the institutions to curb risk factors. It also assists in generating profits and take measures for the losses incurred.

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Many a times, the institutional investors have figured out the underlying reason behind the deficit of crypto derivatives products. The deficit of cryptocurrency derivatives products serves as a ground for the institutional investors to feel discomfort for fund allocation to industry driven by capitalism.

In the initial phase of the last month, SBI Holdings launched a crypto exchange. This made the former the first banking institution in this league to have its own cryptocurrency exchange. VCTRADE, the newly launched exchange platform is meant for the retail investors of Japan.

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However, in the present scenario, two regulated exchanges are operated in U.S., namely, CME and CBOE, located in Chicago. LedgerX, the crypto trading platform provides the institutional investors with a range of derivative products. The list of these products include day ahead swaps, calls and puts.

The analysts of the crypto industry are sure about the changing phase in the upcoming year resulting due to new custodians’ entry. The transformation would also be caused due to the setting up of new trading platforms, thereby, providing greater flexibility for exposure to digital assets.

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