SBI Holdings (8473) and the Japanese Blockchain Opportunity
For various reasons, Japan has become home to Bitcoin trading again, having dominated it in the early days thanks to MtGox. This has led to considerable stock market interest in those Japanese companies which might benefit from Bitcoin trading. The focus on Bitcoin, though, misses the key point about Japan and fintech: which is that blockchain – the backbone of Bitcoin – offers a means for Japan’s financial industry to escape, Houdini like, from its financial dark ages.
Blockchain doesn’t have to have anything to do with Bitcoin, just as it doesn’t necessarily have to have anything to do with non-fiat currencies.
There are various blockchain developments underway in Japan. These include: the development of a parallel digital currency to the yen (J-Coin); the open-source Linux-based Hyperledger; and a tie-up between Ripple and SBI Holdings - SBI Ripple Asia. SBI Ripple Asia has already arranged for a consortium of Japanese banks to trial its international payments system. It has also just announced that a group of leading Japanese credit card companies have become involved. This news has generated a spike in interest in the shares of SBI Holdings, which as well as owning 60% of SBI Ripple Asia, has a slew of investments in blockchain companies, including an 11% stake in Ripple, through its fintech fund. Even without blockchain, SBI Holdings is having a strong earnings year in FY17, aided by the strong stock market and its growing share of online trading. The company’s fintech prowess means that it is also strong in both online banking and robo-advisory asset management.
SBI Holdings is a holding company engaged in the control and management of its group through share ownership. Through its subsidiaries, Co. is engaged in the provision of securities, banking, insurance, housing loan, financial media, real estate financial, forex margin trading businesses, and overseas financial services; the operation and management of investment partnership, the investment in domestic and international venture companies, and the provision of investment advisory services. Co. is also engaged in the 5-aminolaevulinic acid-related business, as well as the research, development, and sale of drugs, cosmetics and health foods.
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.