SBI Holdings has started formal talks to acquire a stake inBitbank, one of Japan’s larger domestic cryptocurrency exchanges. The Tokyo-based brokerage group submitted a letter of intentto Bitbank on Friday, stating that it aims to turn the platform into aconsolidated subsidiary after due diligence and internal approvals.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!).Bitbank operates the “bitbank” exchange and focuses oncrypto-related services. The company, founded in 2014 and headquartered inTokyo’s Yaesu district, holds registration as a crypto asset exchange operatorwith the Kanto Local Finance Bureau.It also has a money lender license from the TokyoMetropolitan Government. Bitbank says it prioritizes security and marketdevelopment and has promoted wider use of cryptocurrencies under Japan’sexisting regulatory framework.SBI Eyes Bitbank Deal amid Japan’s Tightening Crypto RulesThe planned acquisition comes shortly after SBI reorganisedpart of its crypto business at home. Earlier, SBI VC Trade absorbed BitpointJapan in an effort to improve operational efficiency and profitability by usingmanagement resources more effectively. SBI positions the potential Bitbank dealas another step to build scale in crypto trading and infrastructure within thegroup.Japan is also preparing to tighten its treatment of digitalassets. The government is working on changes that would bring crypto assetswithin the scope of the Financial Instruments and Exchange Act, the main lawthat governs securities such as shares and bonds.You may also like: SBI Group’s Crypto Arm Reportedly Loses $21 Million in Suspected North Korean HackThe revised rules could apply from fiscal 2027 if lawmakersapprove the amendments. SBI says it expects that adding Bitbank to the groupand pursuing synergies among its crypto businesses will help it secure astronger position in the domestic market as this new regulatory framework takesshape.SBI’s push to buy into Bitbank comes on the back of severalrecent crypto and digital-asset initiatives that target both retail savers andinstitutional clients. Earlier this year, its crypto arm SBI VC Trade rolledout a USDC stablecoin lending service for Japanese individuals. The product offers fixed‑term, yen-accessible exposure to adollar‑peggedasset, giving local savers a way to earn yield on USDC within a regulateddomestic framework rather than turning to offshore platforms.SBI Expands Crypto Push with TokenizationAt the infrastructure level, SBI has teamed up with Web3 firm Startale to build a dedicated blockchain venue for tokenized assettrading. The project, often described as a blockchain exchange for tokenizedsecurities and real‑world assets, aims to support 24/7 trading forinstitutions across Asia. SBI has also moved to deepen its institutional reach througha strategic investment in U.S. prime broker Clear Street. As part of that deal,the firms plan a joint venture in Japan to bring Clear Street’s clearing andprime brokerage capabilities to local hedge funds and professional investors. Together with the Bitbank talks, these steps show SBI tryingto stitch together retail yield products, tokenized‑assetinfrastructure and institutional market access into a single, more integrateddigital‑assetoffering.This article was written by Jared Kirui at www.financemagnates.com.