Let's explore developments in the financial sector, including Nomura Holdings, Daiwa Securities, SBI Holdings, and Mitsubishi UFJ Financial Group.
Interest in blockchain and crypto assets in this area is high, and the company is actively conducting demonstration tests. It is clear that bank stocks will have an advantage in the event of a major change in Japan's monetary policy and higher interest rates. The government's “savings to investment” policy and the new NISA, which will begin in 2024, are tailwinds for securities stocks.
Category：Finance
Operates “SBINFT Market” and provides “SHIMENAWA
Actively developing Web 3.0 business to push related keywords such as blockchain and NFT
SBI Holdings is actively participating in Web 3.0-related businesses: it invested in the U.S. company Ripple in 2016 and established MoneyTap in 2019 to provide remittance and payment infrastructure services using the company's blockchain technology.
In October of the same year, the SBI Group led the establishment of the Japan STO Association, which aims to promote the sound development of the security token field, and in 2021, it established the SBI Institute for Financial and Economic Research as a think tank to research and study next-generation finance and digital finance. Later, in April 2022, the company also established the “Japan Digital Space Economy Federation” as a cross-industry comprehensive economic organization that contributes to the development of digital space, as well as other platform projects.
In addition, the company operates the crypto asset exchange “SBI VC Trade” and the NFT marketplace “SBINFT Market,” and provides the traceability service “SHIMENAWA” using the blockchain platform Corda. In 2022, the company will invest in Digital Asset, a U.S. company that develops the “Daml” smart contract language, and aims to establish a joint venture company in the future.
▶▶︎Future Outlook
With Web 3.0 clearly stated as Japan's growth strategy, the company may become a right-wing Web 3.0-related stock.
Category：Finance
Coincheck's Trends Key to Further Stock Price Gains
In response to the move to waive stock transaction fees, which has become a cause for concern, Monex Group (8698), one of the major online securities companies, has been fully engaged in the crypto asset business.
Monex Group, one of the major online securities companies, entered the crypto asset business in 2018 with its acquisition of Coincheck, a crypto asset exchange with the No. 1 market share in Japan at the time, for ¥3.6 billion. At the time of the acquisition, Coincheck's performance was deteriorating due to the impact of a large-scale fraudulent outflow of crypto assets, just as the crypto asset bubble was about to burst, as well as system development costs and personnel expenses.
However, since the end of 2020, the booming crypto asset market has led to an increase in transactions at Coincheck, and trading revenues have ballooned, which has had a positive impact on Monex Group's performance.
The main earnings driver for Monex Group is commissions from stock trading, but there is a growing concern that this trend will spread to Japan as U.S. securities companies are increasingly eliminating online stock trading commissions.
This may lead to an increase in the trend toward no trading commissions in Japan as well, which is a concern for the company's future prospects. As a countermeasure, Monex Group has announced a plan to make the crypto asset business a pillar of its earnings, and is actually moving forward with a plan to list Coincheck on the NASDAQ in the US.
▶▶︎Future Outlook
If Coincheck's listing on NASDAQ is realized, its share price will be significantly affected.
Category: Finance
Developed and provided “Web3 Pocket Campus,” a Web 3.0 learning application
Aggressively promoting Web 3.0 business by establishing crypto asset-related businesses overseas and developing learning apps for businesspeople
Nomura Holdings entered the Web 3.0 business at a relatively early stage among securities firms by launching the “Komainu” crypto asset custody service with digital asset-related firms overseas in 2020.
In May 2022, the company also announced the establishment of a new company to handle crypto asset trading, NFT, DeFi business, etc. The company launched “Laser Digital Holdings AG” in Switzerland. The new company will provide new value to clients in the area of digital assets based on Nomura Holdings' expertise in institutional business and its global client base, the company explained.
The new company has since made strategic investments in the Infinity Exchange, a DeFi platform for institutional investors.
In addition, in May 2023, Nomura Holdings began developing a Web 3.0 learning application for smartphones called “Web3 Pocket Campus,” which was launched in August. In this way, Nomura Holdings is actively promoting the Web 3.0 business.
▶▶︎Future Outlook
Expectations for further business expansion since Nomura Holdings entered the Web 3.0 space at a relatively early stage
Category: Finance
Operates “crypto asset-backed loans” through subsidiary Fintertech
Accelerating movement in the Web 3.0 area, including providing crypto asset-backed loans for the first time in Japan
Daiwa Securities, through its subsidiary Fintertech, began offering “Digital Asset-Backed Loans” in April 2020, in which legal tender is loaned using crypto assets as collateral; in August 2023, the company also announced a crypto asset lending service, accelerating its moves.
In February 2022, in collaboration with Kenedix, SMBC Nikko Securities, and others, the company commercialized digital securities and security tokens (STs) using Progmat, an issuance and management platform for all digital assets provided by Mitsubishi UFJ Trust and Banking Corporation. To date, the company has underwritten a cumulative total of approximately 22.6 billion yen, making it the securities company with the largest market share in Japan.
In addition, the company recently announced that it has begun considering a business alliance with puffin, which operates Cryptact, an automatic profit-and-loss calculation service for crypto assets, to promote business in Web 3.0-related businesses. The company underwrote a third-party allocation of new shares by Pafin. The two companies intend to combine their respective know-how to jointly develop businesses in the Web 3.0 domain.
▶▶︎Future Outlook
ST: In addition to its track record as a securities company with the largest market share in Japan, is the company's aggressive entry into the Web 3.0 business a positive factor in its future prospects?
Category：Finance
Plans to issue stable coins, etc., using “Progmat
Riding the current trends such as legal reforms, MUFG is rapidly strengthening its presence in the Web 3.0 domain.
Mitsubishi UFJ Financial Group is developing and offering the next-generation digital asset platform “Progmat” from 2022, and plans to issue stable coins using Progmat in 2024 in cooperation with Mizuho Financial Group, other megabank groups, NTT Data, and others. The company plans to issue a stablecoin using Progmat in 2024 with Mizuho Financial Group, a group of megabanks, NTT Data, and others.
In addition, the company has begun to consider a “crypto asset trust service,” which it has been exploring for about six years. In collaboration with Ginco, which is involved in the crypto asset wallet business, and others, the bank expects to accelerate its moves toward business expansion in the Web 3.0 domain. In May 2023, BTMU concluded a capital and business alliance with TBT Lab Group, which is engaged in the Metaverse business.
This business alliance will accelerate efforts to create the metaverse economic zone envisioned by TBT Lab, and will promote the development of necessary financial platform functions such as authentication, settlement, and data. In light of these developments, Mitsubishi UFJ Financial Group is currently becoming an important player in the Web 3.0 domain.
▶▶︎Future Outlook
Share price may rise depending on the growth of Web 3.0 business, such as aggressive investment in the Web 3.0 domain and entry into the metaverse field.
Category：Finance
Raised a total of about 900 million yen from Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Financial Group's long-term goal is to develop its own token business and commercialize it in the future
In July 2022, SMFG announced that it would collaborate with HashPort, a Web 3.0 startup engaged in blockchain games, etc., in the NFT business. In December of the same year, HashPort and its consolidated subsidiaries HashBank and HashPalette reached a basic agreement on a business alliance in the area of soulbound tokens (SBT).
In January 2023, HashPort raised a total of approximately 900 million yen from UTEC No. 4 Investment Limited Partnership and Sumitomo Mitsui Banking Corporation. Sumitomo Mitsui Financial Group, together with HashPort, plans to support companies aiming to enter the Web 3.0 market and accelerate the development of Web 3.0 products that utilize large-scale IP originating in Japan.
SMFG is also actively participating in the metaverse field, having formed a business alliance with TBT Lab Group in March 2023 with the goal of promoting new business development in game commerce within the open metaverse space. They plan to conduct demonstration experiments with a view to commercialization in the future.
▶▶︎Future Outlook
While the outlook for the accelerating Web 3.0 business is bright, the company is taking a wait-and-see approach in the field of metaverse, where it is aggressively entering the market.
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