In the most recent financial report by SBI Holdings, the firm had mentioned how it would continue to expand its reach globally by creating synergies/partnerships/joint ventures through the establishment of a new ecosystem based on digital assets that will further achieve the following:
- Expand investments into domestic and overseas digital asset based ventures
- Pursuit of synergies within the digital asset ecosystem, and synergies with the existing financial ecosystem
- Create necessary conditions for revitalization of cryptocurrency market
In line with this vision, the firm has formed a Joint Venture with Ping An’s subsidiary, OneConnect. The latter is among the largest finetech SaaS (Software As A Service) platforms in China. Ping An is a Chinese holding conglomerate whose subsidiaries deal with the industries of insurance, banking and financial services. In this case, its subsidiary of OneConnect, offers finetech service solutions to small and medium-sized banks.
To be precise, OneConnect serves 468 banks and 1,890 financial institutions in China by tapping into Ping An’s resources of AI, Blockchain technology, Bio-metric Identification and cloud technologies. OneConnect also serves banks in Hong Kong and ASEAN (association of Southeast Asian Nations) countries.
A representative of SBI Holdings is quoted as saying the following with regards to the new joint venture:
We believe the cooperation between SBI and Ping An will also benefit the overseas expansion of Japanese regional financial institutions in China.
The terms of the agreement include SBI holding 60% of the joint venture while OneConnect and An Ke (another subsidiary of Ping An) jointly owning 40%.
This joint venture is particularly important for this makes it possible for other partners of SBI, such as the Ripple Company, to also benefit from this new development. The Ripple company and SBI Holdings have been partners for over 2 years and have formed the firm known as SBI Ripple Asia Co.
The objectives of the latter company is to achieve the following:
- To promote currency and financial system innovation on the blockchain
- Conduct business development in Japan and Asia
- Provide a settlement platform utilizing blockchain technology in Japan and the entire Asia Region
As earlier mentioned, the joint venture with OneConnect further expands SBI’s reach – and potentially that of SBI Ripple – into China.