Monex Group, a Japanese financial conglomerate known for its online brokerage, crypto exchange, and asset management services, has announced its acquisition of a majority stake in Canada’s 3iQ Digital Holdings and its subsidiaries for $39.8 million.
In a statement, Monex revealed its ambition to bolster its asset management division by integrating 3iQ, a Canadian crypto asset management in Canada, into its operations.
Monex said the integration will allow it to harness the burgeoning demand for crypto asset management among institutional investors and crypto asset exchanges globally.
Monex, which already owns Coincheck, Japan’s crypto asset exchange, plans to extend its offerings beyond its 1.8 million retail customers to cater more robustly to corporate clients, including institutional investors. Coincheck’s expansion into corporate services is part of this strategic move.
The acquisition is also set to enhance Monex’s capabilities in crypto-asset-related product creation, leveraging 3iQ’s expertise to maximize synergies across its group companies.
Yuko Seimei, CEO of Monex Group, emphasized the strategic importance of this acquisition. He said:
Our goal is to fortify our asset management business. Welcoming 3iQ into our group is a strategic step towards achieving growth by tapping into the crypto asset management market for institutional investors and exchanges, a sector anticipated to see significant growth.
3iQ, licensed in Ontario, Canada, is a pioneer in the digital asset space. It was the first in North America to launch regulated, exchange-listed funds for Bitcoin (BTC) and Ethereum (ETH).
The firm has been a market leader, introducing Bitcoin and Ethereum ETFs on the Toronto Stock Exchange and recently integrating Staking capabilities in an Ethereum ETF, a first in the industry.
3iQ has also launched the 3iQ Managed Account Platform (QMAP), a comprehensive suite of crypto hedge fund managed accounts. This platform connects institutions with advanced digital asset strategies, marking a significant advancement in digital asset management.
In the face of a trend where major crypto-asset exchanges are expanding into asset management, 3iQ aims to provide asset management services on an outsourced basis, catering to the dynamic needs of their clientele.
Frederick T. Pye, Chairman and CEO of 3iQ, expressed enthusiasm about joining the Monex Group.
“This partnership accelerates our mission to deliver regulated and innovative digital asset products globally. Our collaboration, especially with Coincheck, will enhance our offerings, particularly for institutional investors,” said Pye.