Monex Group, Inc., a Japanese financial group that runs online brokerage, crypto exchange, and asset management business in Japan and globally, will acquire the majority stake of 3iQ Digital Holdings, Inc. (an its subsidiaries), a pioneer in crypto asset management in Canada, for $39.8 million.

Monex said in a statement on Thursday that it aims to strengthen its asset management business of the group, and by making 3iQ subsidiaries, it anticipates 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.

It is noted that the company also owns Coincheck, the top player in the crypto asset exchange business in Japan, as one of its main subsidiaries.

In addition to the business for its 1.8 million retail customers, Coincheck plans to strengthen its business with corporate clients including institutional investors.

Monex also plans to leverage 3iQ’s crypto-asset related product creation capabilities to maximize synergies among its group companies.

“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, ” Monex Chief Executive Officer Yuko Seimei said.

According to the statement, 3iQ stands at the forefront of digital asset innovation.

The firm, licensed in Ontario, Canada, has etched its name in history as North America’s first to launch regulated exchange-listed funds for Bitcoin (BTC) and Ethereum (ETH) – a monumental leap in financial technology.

3iQ emerged as one of the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange, cementing their role as market leaders.

The company continued to break new ground, recently becoming the first globally to integrate Staking capabilities within an Ethereum ETF – a game-changing move for digital asset management.

3iQ recently unveiled a groundbreaking development – the industry’s first-ever comprehensive suite of crypto hedge fund managed accounts through their innovative 3iQ Managed Account Platform (QMAP).

This pioneering platform is not just a first but a revolution, seamlessly connecting institutions with cutting-edge digital asset alpha strategies.

QMAP stands as a beacon of security, transparency, and efficiency, meticulously designed to meet the complex demands of institutional investors worldwide.

In response to a dynamic market trend where major crypto asset exchanges are diversifying into asset management, 3iQ plan to offer unparalleled asset management services on an outsourced basis, staying ahead of the curve and catering to the evolving needs of their clients.

“We’re absolutely thrilled about this incredible opportunity to join forces with Monex Group,” said Frederick T. Pye, Chairman and Chief Executive Officer of 3iQ.

According to him, this partnership is not just about growth; it’s a thrilling leap towards realizing their dream.

“We’ve always been passionate about bringing regulated, innovative digital asset products to investors worldwide, and now, with Monex Group, we can turbocharge this mission,” he said.

He also said the firm is eagerly looking forward to being a part of the Monex family, especially collaborating with Coincheck – Japan’s crypto exchange powerhouse with a staggering 1.8 million customer accounts.

“With 3iQ’s expertise in crafting exceptional crypto-asset products, we’re poised to bolster Coincheck’s offerings, especially for institutional investors,

“This is beyond a win-win – it’s a joyous, groundbreaking collaboration that promises to reshape our industry,” he added.

For Monex Group, TD Cowen acted as financial advisor and Osler, Hoskin & Harcourt LLP as legal advisor.

For sellers, Cinaport Capital Inc. acted as financial advisor and Wildeboer Dellelce LLP as legal advisor.

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