Monex Group to Acquire 3iQ, Boosting Crypto Business

The Japanese brokerage and financial services firm, Monex Group, 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. This acquisition is priced at $39.8 million, marking a pivotal moment for Monex Group in its journey to expand its crypto business​​​​.

Pioneering Achievements by 3iQ

3iQ is renowned for its innovative strides in the crypto space, particularly in North America. It has the distinction of launching the first regulated exchange-listed funds for Bitcoin and Ethereum in the region. Additionally, 3iQ was the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, and notably, it added Staking capabilities to an Ethereum ETF. Besides these public offerings, 3iQ manages private investment funds, initially available only to accredited and institutional investors in Canada. These funds provide direct exposure to bitcoin value and aim for capital appreciation through a long-term holding strategy​​.

Synergistic Benefits and Future Prospects

Yuko Seimei, the CEO of Monex Group, emphasized that this acquisition aligns with the company’s long-term strategy to bolster its asset management segment. It aims to tap into the growing demand for crypto asset management among institutional investors and global exchanges. Frederick T. Pye, Chairman and CEO of 3iQ, echoed this sentiment, highlighting the potential synergies, especially in collaboration with Coincheck, a leading Japanese crypto exchange owned by Monex. Pye sees this partnership as a groundbreaking opportunity to reshape the industry, benefiting institutional investors with enhanced crypto-asset products​​.

3iQ has recently launched the 3iQ Managed Account Platform (QMAP), which offers a suite of crypto hedge fund managed accounts targeted at institutional investors. This platform addresses key aspects such as pricing, custody, audit, and public interest issues in a regulated investment environment. Moreover, Monex Group’s recent financial results have shown improved profitability in its US Segment since a strategic shift in 2022. The company expects its crypto business to exhibit potential upside as the digital asset market recovers, leveraging its expertise in the brokerage industry to address key concerns in the cryptocurrency ecosystem​​.

Monex Group’s acquisition of a majority stake in 3iQ Digital Holdings represents a strategic expansion into the crypto asset management space. This move not only signifies Monex’s commitment to evolving with the dynamic digital asset landscape but also positions it as a formidable player in the global crypto market.

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