Key Takeaways
- • Japan's Monex Group, Inc. will acquire a majority stake in 3iQ Digital Holdings, Inc. for $39.8 million, according to a Monex statement issued on Thursday.
- • Monex aims to expand its asset management business by serving institutional investors and crypto asset exchanges globally, and plans to leverage 3iQ's crypto product creation capabilities across its group.
- • 3iQ, licensed in Ontario, Canada, is described by the company as North America's first issuer of regulated exchange-listed funds for Bitcoin and Ethereum, and a first to add staking to an Ethereum ETF.
- • The deal links 3iQ with Monex's subsidiary Coincheck, Japan's crypto exchange with 1.8 million customer accounts, which plans to expand its institutional client offering.
- • TD Cowen advised Monex as financial advisor and Osler, Hoskin & Harcourt LLP as legal advisor; Cinaport Capital Inc. advised the sellers, with Wildeboer Dellelce LLP as legal advisor.
Summary
Monex Group, Inc., a Japanese financial group with online brokerage, crypto exchange and asset management operations in Japan and abroad, will acquire a majority stake in 3iQ Digital Holdings, Inc. and its subsidiaries for $39.8 million, according to a statement Monex issued on Thursday. Monex said the acquisition is intended to strengthen its asset management business and to capture crypto asset management demand from institutional investors and crypto asset exchanges worldwide, a market it expects to grow.
Monex noted that it already owns Coincheck, a leading crypto exchange in Japan. Coincheck serves 1.8 million retail customers and plans to deepen its business with corporate clients, including institutional investors. Monex also intends to use 3iQ's product creation capabilities for crypto-asset products to generate synergies across its group companies.
According to the statement, 3iQ is licensed in Ontario and describes itself as North America's first provider of regulated exchange-listed funds for Bitcoin and Ethereum. The firm says it was among the first to list Bitcoin and Ethereum ETFs on the Toronto Stock Exchange and recently became the first globally to integrate staking within an Ethereum ETF. It has also introduced the 3iQ Managed Account Platform (QMAP), which the firm describes as offering a suite of crypto hedge fund managed accounts for institutional investors, and plans to offer outsourced asset management services as crypto exchanges expand into asset management. These company characterizations are 3iQ's own claims.
Monex Chief Executive Officer Yuko Seimei said the acquisition supports the group's long-term strategy to grow its asset management arm. 3iQ Chairman and Chief Executive Officer Frederick T. Pye said the partnership would help the firm pursue its mission of bringing regulated digital asset products to investors worldwide, and highlighted collaboration with Coincheck on products for institutional investors.
TD Cowen acted as financial advisor to Monex, with Osler, Hoskin & Harcourt LLP as legal advisor. Cinaport Capital Inc. acted as financial advisor to the sellers, with Wildeboer Dellelce LLP as legal advisor.
Monex noted that it already owns Coincheck, a leading crypto exchange in Japan. Coincheck serves 1.8 million retail customers and plans to deepen its business with corporate clients, including institutional investors. Monex also intends to use 3iQ's product creation capabilities for crypto-asset products to generate synergies across its group companies.
According to the statement, 3iQ is licensed in Ontario and describes itself as North America's first provider of regulated exchange-listed funds for Bitcoin and Ethereum. The firm says it was among the first to list Bitcoin and Ethereum ETFs on the Toronto Stock Exchange and recently became the first globally to integrate staking within an Ethereum ETF. It has also introduced the 3iQ Managed Account Platform (QMAP), which the firm describes as offering a suite of crypto hedge fund managed accounts for institutional investors, and plans to offer outsourced asset management services as crypto exchanges expand into asset management. These company characterizations are 3iQ's own claims.
Monex Chief Executive Officer Yuko Seimei said the acquisition supports the group's long-term strategy to grow its asset management arm. 3iQ Chairman and Chief Executive Officer Frederick T. Pye said the partnership would help the firm pursue its mission of bringing regulated digital asset products to investors worldwide, and highlighted collaboration with Coincheck on products for institutional investors.
TD Cowen acted as financial advisor to Monex, with Osler, Hoskin & Harcourt LLP as legal advisor. Cinaport Capital Inc. acted as financial advisor to the sellers, with Wildeboer Dellelce LLP as legal advisor.
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