Japan’s biggest brokerages are looking to compete with the country’s crypto-native exchanges for digital asset market share.
According to research by Messari, the top three online brokerage firms in Japan are experiencing surging revenue from their cryptocurrency exchange services.
In its Asian Crypto Landscape report, Messari noted the operating revenue and net worth of exchange platforms operated by Japan’s top securities brokers is quickly catching up to that of their crypto-native rivals.
Comparison of net worth and operating revenue between exchanges operated by crypto-native firms versus online securities brokers in Japan, August 2020: MessariMessari researcher Mira Christanto tweeted that Japan’s three-largest brokers by customer deposits — SBI, Rakuten, and Monex — all operate crypto exchange platforms.
Christanto also noted that many large asset managers are lobbying Japanese lawmakers to allow them to offer expanded cryptocurrency services and products, such as custody solutions and exchange-traded funds.
“Large asset management funds are lobbying the government to allow custody and ETFs.