Metaplanet has partnered with SBI VC Trade to enhance its Bitcoin custody services as part of its strategy to hedge against Yen volatility and expand its cryptocurrency reserves.
Metaplanet Announces Strategic Partnership
Japanese asset manager Metaplanet has announced a strategic partnership with SBI VC Trade, the cryptocurrency exchange arm of Tokyo-based SBI Holdings, to bolster its Bitcoin custody services. This collaboration is part of Metaplanet's broader strategy to enhance its Bitcoin reserves as a hedge against the volatility of the Japanese Yen.
The partnership with SBI VC Trade is seen as a critical component of Metaplanet’s ongoing efforts to engage with leading industry stakeholders in Japan.
The company stated,
"This collaboration is part of our ongoing effort to engage with leading industry stakeholders in Japan who support our corporate Bitcoin accumulation strategy."
Strategic Move: Bitcoin as a Reserve Asset
Earlier this year, Metaplanet declared its intention to adopt Bitcoin as a reserve asset, a move reminiscent of U.S.-based MicroStrategy, which began acquiring Bitcoin in 2020. With this strategy, Metaplanet aims to become Japan's equivalent of MicroStrategy, building up a substantial Bitcoin portfolio. The firm has already accumulated 360 BTC under its “Bitcoin First, Bitcoin Only” strategy, with the partnership with SBI VC Trade being a significant step in advancing this initiative.
Custody Services and Regulatory Compliance
SBI VC Trade, regulated by Japan’s Financial Services Agency, will provide Metaplanet with a compliant corporate custody service that prioritizes tax efficiency. The service will provide Metaplanet with the opportunity to use its Bitcoin holdings as collateral for financing, offering flexibility in its financial strategy.
A key feature of the service provided by SBI VC Trade is the "Exclusion Service for End-of-Period Valuation Taxation." This new service allows corporate crypto investors like Metaplanet to hold assets with reduced tax burdens, fostering long-term confidence in their investments. Additionally, Metaplanet will gain access to leveraged trading with real margin, utilizing all SBI-supported crypto assets as collateral.
Broader Implications for Japan's Crypto Market
The partnership also highlights the nature of Japan's evolving cryptocurrency market, which remains a key player globally despite regulatory complexities and the dominance of major exchanges like Upbit and Bithumb.
By joining forces with SBI VC Trade, Metaplanet not only strengthens its Bitcoin custody capabilities but also positions itself better to manage the regulatory environment, secure tax benefits, and explore new financing avenues in Japan's dynamic cryptocurrency market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
