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Wednesday, November 25, 2020

SBI acquires TaoTao crypto exchange, making it a fully-owned subsidiary

  • According to SBI Holdings, this acquisition will help it provide better crypto-related services.
  • Through acquiring TaoTao, SBI Holdings now owns two crypto exchanges.
  • Before this acquisition, TaoTao exchange backed out of negotiations with Binance.

SBI Holdings, Japan’s leading online financial group has acquired TaoTao crypto exchange. The conglomerate unveiled this news on October 7 through an official announcement, noting that it had purchased all of TaoTao’s shares, making the exchange its wholly-owned subsidiary. Per the publication, SBI Holdings acquired TaoTao through its Tokyo-headquartered subsidiary derivatives and foreign exchange arm dubbed SBI Liquidity Market Co.

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In the announcement, SBI noted that acquiring TaoTao will help contribute to its expertise in providing enhanced crypto-related services.

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The group added,

“In the future, we will make maximum use of the management resources such as know-how and knowledge of the SBI Group as a comprehensive financial group and the customer base and service know-how of the crypto assets that TaoTao has cultivated so far, and the latest, safe and secure crypto assets.”

SBI’s growing interest in crypto

By acquiring TaoTao, SBI now owns two licensed crypto trading platforms. At the moment, the group is offering crypto trading services through its venture capital arm dubbed SBI VC Trade, which has been operational since its acquisition in July 2019.

Prior to this acquisition, SBI’s 2019 financial report unveiled that its securities’ trading revenue had surged 19.2% in the past year. The group accredited this rise to its crypto investment wing, which turned a £ 5.3 million loss to a £ 23.35 million profit in a year. The report allegedly analyzed the results of six months and revealed that SBI VC Trade witnessed significant growth as SBI Holding’s general revenue declined.

TaoTao’s failed negotiations with Binance

This news comes after a report on October 5 unveiled that Binance’s negotiations with TaoTao failed. Per the publication, TaoTao decided to end negotiations with the exchange after nine months of discussions. Reportedly, Binance had been discussing a partnership that involved building a joint crypto exchange in Japan with the TaoTao and Z Corporation, the daughter company of Z Holdings since January 17 this year. Allegedly, Binance considered this collaboration a gateway into the Japanese crypto market.

TaoTao did not provide details for terminating the negotiations. However, the exchange’s spokesperson noted that after considering a variety of possibilities, they could not agree on a strategy with Binance.

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