Monex Group strengthens cryptocurrency business with acquisition of 3iQ

Monex Group, a Japanese brokerage and financial services company, has announced a significant move in the cryptocurrency sector. It plans to acquire a majority stake in 3iQ Digital Holdings, a Canadian digital asset investment fund manager. The acquisition price is valued at $39.8 million and marks a pivotal moment in Monex Group’s journey to expand its cryptocurrency business​​​​.

3iQ’s pioneering achievements

3iQ is known for its innovative developments in the cryptocurrency space, especially in North America. This has the distinction of launching the first regulated exchange-listed funds for Bitcoin and Ethereum in the region. 3iQ was also the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, specifically adding staking capabilities to the Ethereum ETF. In addition to these public offerings, 3iQ manages private equity funds initially available only to accredited and institutional investors in Canada. This fund has direct exposure to the value of Bitcoin and aims to increase asset value through a long-term holding strategy.​​

Synergy effects and future prospects

Yuko Seimei, CEO of Monex Group, emphasized that the acquisition is consistent with the company’s long-term strategy to strengthen its asset management division. She aims to capitalize on the growing demand for cryptocurrency asset management among institutional investors and global exchanges. Frederick T. Pye, Chairman and CEO of 3iQ, echoed this sentiment, highlighting potential synergies, particularly through collaboration with Coincheck, a leading Japanese cryptocurrency exchange owned by Monex. Pye sees this partnership as a groundbreaking opportunity to reshape the industry and help deliver enhanced cryptocurrency asset products to institutional investors.

3iQ recently launched the 3iQ Managed Account Platform (QMAP), which offers a suite of cryptocurrency hedge fund managed accounts for institutional investors. The platform addresses key aspects such as pricing, custody, auditing and public interest issues in a regulated investment environment. Additionally, Monex Group’s latest financial results demonstrated improved profitability in its US segment following a strategic shift in 2022. The company anticipates a potential upside for its cryptocurrency business as digital asset markets recover, and is leveraging its expertise in the brokerage industry to address key issues. In the cryptocurrency ecosystem​​.

Monex Group’s acquisition of a majority stake in 3iQ Digital Holdings marks its strategic expansion into the cryptocurrency asset management space. This move not only signals Monex’s commitment to evolve with the dynamic digital asset landscape, but also establishes itself as a strong player in the global cryptocurrency market.

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