The second largest bank in Japan will sign a deal with SBI Holdings to offer digital banking services available on smartphones.

According to an Apr 27 article in the Nikkei newspaper, the Sumitomo Mitsui Financial Group (SMFG) and SBI take launched the first steps towards a multimillion dollar agreement expected to conclude later this week, before Japan enters its Golden Week banking holidays.

In June, SMFG volition acquire a 20% pale in SBI subsidiary NeoMobile Securities, holdings worth several billion yen. By the end of this year, SBI will have an investment from SMFG to create a new $i billion fund to invest in companies involved in digital engineering science. The new fund will explore areas for investment similar fintech, blockchain, and 5G.

Close ties to Ripple

SBI is a firm with a known affinity for the cryptocurrency XRP. Their primary executive officeholder (CEO) Yoshitaka Kitao is a fellow member of Ripple'due south board of directors — in addition to his known friendship with Satoshi claimant Craig Wright — and the company has even considered paying shareholder dividends in XRP tokens.

SBI Mining Chip, another subsidiary of the Japanese fiscal giant, started manufacturing crypto mining equipment in 2022.

New regulations for digital assets in Nippon

Though the partnership between SMFG and SBI shows a heightened involvement in digital currencies from both firms, crypto exchanges and digital assets in Nippon will soon face new regulatory challenges.

Laws passed by Japan'southward Firm of Representatives concluding twelvemonth regarding the Payment Services Human activity and Financial Instruments and Commutation Act will come into effect on Friday, May ane. The 2 pieces of legislation are modifications to existing laws for regulating cryptocurrencies in Nihon.