SBI Holdings Accelerates Crypto Expansion With Gauntlet, EDX Deals as It Builds On-Chain Finance Ecosystem

SBI Holdings Inc. has accelerated its push into digital assets, deploying a series of large investments in the cryptocurrency sector over the past several weeks as it sharpens its strategy in the market.

The Block reported on July 12 that SBI this week was the sole investor in the $125 million Series C round for on-chain risk management platform Gauntlet. It also invested $76 million in the Series C round for institutional digital-asset exchange EDX Markets.

Last month, SBI acquired Japanese crypto exchange bitbank for about $289 million. In February, it also secured a controlling stake in Singapore-based exchange Coinhako. The company also joined Digital Asset's $355 million funding round, DeFi lending protocol Morpho's $175 million token round, and Circle's $222 million token presale related to Arc blockchain.

An SBI spokesperson told The Block that the group is driving an on-chain transition across its operations. The aim is to provide comprehensive capabilities across the digital-asset landscape, from exchanges and asset tokenization to market platforms. Recent acquisitions, investments and partnerships are all part of that strategy.

The spokesperson added that the era of a "token economy," in which all assets are tokenized and trading, settlement and contract execution take place on blockchains, is drawing near. SBI plans to complete its preparations as quickly as possible to establish itself as a global leader in the rapidly evolving digital-asset industry.

Joseph Goh, Asia-Pacific head at crypto investment bank Areta, said SBI is doing something no other financial group in Asia has attempted. It is building a cross-border digital-asset franchise spanning issuance, settlement, market infrastructure, asset management and retail distribution.

He said combining Gauntlet's institutional on-chain capabilities with the distribution networks of bitbank and Coinhako could create Asia's first large-scale on-chain asset-management business. In his view, SBI is not buying crypto exposure but the infrastructure of the next-generation financial system.

SBI's faster investment pace also comes as Japan's regulatory environment changes. The country's House of Representatives passed a bill last month that would classify crypto assets as financial products comparable to stocks. If it also passes the House of Councillors and takes effect next year, crypto ETFs could be launched. The current capital-gains tax rate on crypto, which can reach 55%, would also be cut to 20% from 2028, in line with stocks and bonds.

Yat Siu, co-founder of Animoca Brands, said SBI is building capabilities ahead of wider digital-asset adoption rather than waiting for regulatory clarity. Quinn Ho, head of venture investing at GSR, and Mike Bucella, co-founder of Neoclassic Capital, said bear markets offer the richest long-term investment opportunities because valuations are lower and competition is lighter. Investors with a long-term perspective should enter near the bottom of the market, they said.

Tarun Chitra, Gauntlet's co-founder and chief executive officer, said SBI's network in Japan and across Asia would help the platform expand to financial institutions, fintech firms and tokenization projects that would have been difficult to reach on its own. It would also make it possible to broaden services to stablecoins based on currencies beyond the dollar and euro, including the yen and Mexican peso.

Tony Acuña-Rohter, chief executive officer of EDX Markets, said SBI's global financial network would help expand the exchange's trading, clearing and settlement capabilities. EDX is also exploring opportunities to work across SBI's broader digital-asset ecosystem in areas including market making, stablecoins, tokenization and brokerage.