Monex Group Takes Majority Stake in 3iQ Crypto Exchange

As part of a further dive into the digital assets world, Japan-based Monex Group is preparing to acquire a majority stake in Canadian crypto asset management company 3iQ Digital Holdings.

Monex Group to Leverage 3iQ’s System for Growth

While the details of the transaction were not explicitly divulged, Monex Group plans to maximize the synergies in its group of companies by leveraging 3iQ’s crypto-asset-related product creation capabilities. Monex Group CEO Yuko Seimei made this strategy very clear in his statement. 

“Our long term strategy is to strengthen our asset management business, and by welcoming 3iQ to our group, we aim to achieve high growth by capturing the crypto asset management needs of institutional investors and crypto asset exchanges around the world, which are expected to grow in the future,” he said.

This is not the first time the firm is investing in a crypto-related entity seeing that it currently runs an online brokerage, a cryptocurrency exchange, and an asset management business. Five years ago, Monex Group acquired Coincheck, a Japanese bitcoin wallet and exchange service headquartered in Tokyo, Japan, founded by Koichiro Wada and Yusuke Otsuka. 

After making several investments in governance, internal controls, and security, this was a new strategy to expand its portfolio. With 3iQ, Monex Group is looking to reach unprecedented levels and hit several milestones. The Canadian asset manager has seen a lot of outflows this year but Monex Group remains confident in its capacity to bring about innovation. 

A recent development in the 3iQ ecosystem underscores this unwavering confidence. Last month, the company launched the industry’s first comprehensive suite of crypto hedge fund-managed accounts through the 3iQ Managed Account Platform (QMAP). 

Growing Acquisitions in the Crypto Space

The new partnership between Monex Group and 3iQ is similar to a move that was made by Terraform Labs last month. The firm acquired Pulsar Finance, a startup specializing in cross-chain portfolio management and analytics. 

More such acquisitions have been seen in the crypto ecosystem in recent years although the venture capital scene saw a drop this year.

On the other hand, Monex Group has shown commitment to inking strategic partnerships. Amidst FTX’s implosion and bankruptcy proceedings, the company once attempted to purchase FTX Japan, a deal that is yet to materialize. 

The alliance with 3iQ is likely one of the many such acquisitions to come for Monex Group and the broader industry.

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