Monex Group Acquiring 3iQ to Bolster Global Crypto Asset Management

Monex Group, a prominent Japan-based brokerage and asset management firm, has announced its plan to acquire a majority stake in Canada-based 3iQ Digital Holdings, signaling a significant expansion in the global cryptocurrency asset management sector.

The acquisition, announced on December 28, underscores Monex Group’s strategic move to strengthen its position in the burgeoning crypto asset management market. 3iQ, known for listing some of the first spot Bitcoin exchange-traded funds (ETFs) in North America, presents a valuable addition to Monex’s portfolio. This move aligns with Monex’s long-term vision to capture the growing demand for crypto asset management from institutional investors worldwide.

3iQ’s innovative approach, particularly its launch of a Bitcoin fund in 2020, well ahead of similar approvals in the U.S., positions it as a leader in the North American crypto space. This pioneering effort resonates with Monex Group’s ambition to be at the forefront of crypto asset management.

The acquisition also entails a collaborative effort with Coincheck, a crypto exchange acquired by Monex in 2018 following a significant hack. Frederick Pye, Chair and CEO of 3iQ, expressed enthusiasm for this collaboration, anticipating it to be a cornerstone of the acquisition. This partnership is poised to leverage Coincheck’s technological prowess and 3iQ’s innovative product offerings, creating a formidable force in the crypto asset management domain.

This move comes at an opportune moment, with Japan recently introducing tax reforms that favor crypto holdings, potentially reversing the exodus of crypto firms from the country. The reforms aim to exempt companies from taxes on unrealized gains from crypto assets, creating a more conducive environment for blockchain and Web3 adoption. Prime Minister Fumio Kishida’s administration has been instrumental in fostering this positive shift, aligning with Monex Group’s strategic vision.

Yuko Seimei, CEO of Monex Group, highlighted the acquisition’s significance in achieving high growth by tapping into the expanding global demand for crypto asset management services. The integration of 3iQ’s expertise and experience is expected to propel Monex Group to new heights in this competitive sector.

Monex Group’s acquisition of 3iQ marks a pivotal step in the global expansion of crypto asset management services. By integrating 3iQ’s pioneering efforts in spot Bitcoin ETFs with Monex’s robust financial expertise, the group is well-positioned to become a global leader in this field. This strategic move not only signifies Monex Group’s commitment to innovation and growth in the crypto space but also reflects the evolving landscape of cryptocurrency regulations and adoption in Japan and beyond. As the world continues to embrace digital assets, Monex Group, with 3iQ and Coincheck, is set to play a significant role in shaping the future of crypto asset management.