Web3-related Business

The SBI Group has expanded its business by quickly incorporating new technologies into the Group based on the three basic strategies of "investment," "introduction," and "diffusion."
In 2016, the Group invested in Ripple, a U.S. company that has crseated a leading distributed ledger technology (DLT). In 2019, we established Money Tap, which utilizes Ripple's technology to provide money transfer and payment services and offer its services to regional financial institutions. The Group continues to form collaborative partnerships with companies that possess innovative core technologies. In 2022, we invested in the U.S. company Digital Asset, which has developed "Daml," a smart contract coding language with excellent blockchain interoperability characteristics and are now preparing to establish a joint venture with the company.

SBI Group promotes system and infrastructure construction in the platform business for Web3 and the metaverse. In October 2019, the Group took the lead in establishing the Japan Security Token Offering Association to ensure investor protection and compliance with laws and regulations relating to the STO business, and to explore business opportunities for individual companies. In April 2022, we established another general incorporated association, the Japan Digital Space Business Federation as a cross-industry business organization dedicated to the development of digital space.

In addition, we established the SBI Financial and Economic Research Institute as a think tank to research future generation digital finance in 2021. Through these activities, we will contribute to the construction of various systems through surveys, research, and policy proposals, searching for and realizing business opportunities that thoroughly comply with laws and regulations and protect investors in Japan.

A security token offering (STO) is a new funding mechanism through the issuance of tokens (substituting for fiat currency) backed by various tangible assets of value, such as stocks, bonds, and real estate as one of the next-generation financial products. In 2021, we were continuously making the achievements at each Group company, such as the first public offering of bond-type STOs and asset-backed STs for general investors in Japan. In addition, we established Osaka Digital Exchange (ODX), which operates PTS, to become the first distribution market for ST in Japan. Also, The Sumitomo Mitsui Financial Group, Nomura Holdings, and Daiwa Securities Group participate in ODX as shareholders. In the future, by collaborating and interconnecting with overseas stock exchanges under the SBI Group's investment and alliance partners, we strive to form one of the world's largest global corridors for the distribution of digital assets by providing a comprehensive range of functions related to ST issuance, distribution, and custody.

We operate an NFT trading platform based on Ethereum (one of the blockchain platforms), which is an overwhelmingly popular global share as an NFT issuing foundation. The "SBINFT Market" is a marketplace for NFTs where digital art created by authorized artists and linked to NFTs can be bought and sold based on blockchain and is a primary and secondary distribution market for authorized digital artworks. Also, it handles a wide range of products, including illustrations, 3D art, video, and music.

Furthermore, we are promoting an "NFT social implementation" initiative that realizes new experiences by adding NFT functions to existing services and providing OEM (Original Equipment Manufacturing) to other companies on the NFT Marketplace.

Globally, there is a growing trend that the purchasing behavior of consumers is greatly influenced not only by product specs but also by whether the product has been created and distributed through appropriate raw materials, production environment, and processes. Companies are required to have transparency and accountability for the entire supply chain, including the harvesting and production of raw materials.

SBI Traceability provides the traceability service "SHIMENAWA," which utilizes Corda, a blockchain platform. At SHIMENAWA, information related to food safety and reliability is guaranteed by traceability recorded on a blockchain with tamper-resistant technical characteristics.

In anticipation of the development of the digital space field, the Group is strengthening its efforts to have future customers. Our main target are young people of the digital generation, who are difficult to reach with traditional advertising because much of their time is spent interacting with Internet-based media, such as social media and video distribution sites.
Therefore, we are working to build relationships with the digital generation in other ways, such as through management of professional gaming teams following the establishment of SBI e-Sports in 2020 and subsequent entry into the e-Sports business.

Established in 2020, SBI e-Sports entered the e-Sports field and operated a professional gaming team. We strive to contribute to the sound development of the e-sports field and become a world-class team and provide support for e-sports events held by regional financial institutions. In addition to building the web platform "Nectere" as a main information dissemination base, a project of Virtual YouTuber as a new challenge is also implemented.

Machinowa Co., Ltd. is working on a local currency business (such as premium gift certificates) that is jointly issued with local governments and regional economic organizations. By electronically issuing premium gift certificates using blockchain/distributed ledger technology, users will be able to proceed series of procedures from application to purchase and payment on a smartphone app. In addition, compared to conventional paper-based issuance, the procedures required by local governments, chambers of commerce and industry, and payment at member stores can be made more efficient. We have achieved economic revitalization and improved convenience for users.

List of Machinowa information platform provided location (as of August 1, 2022)

In addition, the "SBI DX Database," a service for regional financial institutions in which more than 100 companies are scheduled to participate, is a database of a broad lineup of solutions that the SBI Group provides to regional financial institutions that contribute to the DX transformation. The SBI Group made full use of the network cultivated through investments in venture companies and partnerships with external companies, analyzed and constructed data on small and medium-sized enterprises nationwide. By aggregating and analyzing information for each industry category based on this database, we are working to improve customer convenience and revitalize the local economy by accelerating the conversion of local businesses to DX.