• Japan’s Crypto Titans Report Record Crypto Profits, Shift to Altcoins

  • In their second-quarter reports, two of Japan’s biggest crypto players – the banking behemoths SBI and Monex – reported large crypto earnings.

    Both companies have a wide range of crypto interests, both domestically and internationally. SBI has two domestic cryptocurrency exchanges: SBI VC Trade and TaoTao, as well as an international mining arm called SBI Crypto, and a UK-based liquidity provider called B2C2. It also works with America’s Ripple on a number of cooperative ventures.

    Monex, on the other hand, runs the Coincheck cryptocurrency exchange in Japan as well as the TradeStation trading platform in the United States. Both companies began their careers in the financial realm as securities and banking organizations before shifting their focus to cryptocurrency in recent years.

    SBI consolidated its crypto-related business results in its Q2 report, reporting a pre-tax profit of USD 41.7 million for the quarter, up 56 percent from the same quarter last year.

    In its own Q2 report, Monex reported pre-tax crypto profits of USD 82 million, up x1.4 from the previous quarter.

    The company shared some details about its cryptocurrency business performance, writing:

    “Due to increased market volatility, the value of cryptocurrency trading at Coincheck was high. Since joining the Monex Group, Coincheck has made the most money.”

    It further underlined its altcoin credentials, noting that bitcoin (BTC) income contribution “has been on a declining trend,” accounting for only 12% of total revenue in Q2.

    It signaled that it would continue to focus on altcoin growth in the future, citing a constant increase in the number of cryptoassets listed on Coincheck and noting:

    “Among Japanese cryptoasset exchanges, Coincheck focuses on extending the number of supported coins and offers the largest number of cryptocurrencies for trading.”

    SBI wanted to concentrate on the future, hinting at an altcoin-themed future: SBI VC Trade was “considering introducing new [tokens] in the future,” according to the writers of the paper.

    TaoTao was also working on the launch of an “industry-first” product, according to the company.

    SBI also discussed its most recent ambitions for the non-fungible token (NFT) business, including plans to build an NFT marketplace and a secondary market platform.

    It also mentioned its decentralized finance (DeFi) aspirations, saying it was “getting ready to build a DeFi ecosystem.” A dedicated SBI DeFi unit was “currently developing on a smartphone app,” according to the company.

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