SBI Crypto Eyes Potential Partnership with Saudi Aramco

• SBI Holdings in Business Partnership with Saudi Aramco
• Details of the Proposed Partnership
• Structure of the Collaboration
• Is SBI Holdings optimistic about the Middle East?
• Saudi Arabia's Crypto Aspirations
• The Middle East and North Africa's Crypto Economy

SBI Holdings in Business Partnership with Saudi Aramco

Japan's leading cryptocurrency firm, SBI Holdings has entered into a general agreement for a business alliance with renowned oil conglomerate Saudi Aramco, worth $2 trillion. The potential collaboration with the Saudi oil entity is undergoing consideration by SBI.

Details of the Proposed Partnership

As per a report released on December 11, 2023, the collaboration is set to entail the establishment of semiconductor factories within Japan and Saudi Arabian territories. The agreement also includes a mutual investment strategy for each party's digital asset portfolios, inclusive of cryptocurrency.

Structure of the Collaboration

The coordinated efforts will span three main areas. The initial focus will be mutual investment and cooperation within the cryptocurrency arena. Subsequently, the partnership will extend towards identifying and supporting Japanese cryptocurrency start-ups with ambitions of venturing into the Saudi Arabian market. Lastly, the collaboration will oversee the initiation of semiconductor-related projects.

Is SBI Holdings optimistic about the Middle East?

The Middle East has been recognized as a region amiable towards cryptocurrency. SBI Holdings has not shied away from its interest in the region, revealing plans for an SBI Middle East hub in Riyadh. This project is intended to boost the presence of Japanese cryptocurrency start-ups in Saudi Arabia.

Saudi Arabia's Crypto Aspirations

Meanwhile, Saudi Arabia harbors ambitions to evolve into a dominant cryptocurrency hub within the Middle East, competing directly with the United Arab Emirates (UAE). A report by Chainalysis indicates that Saudi Arabia led the global cryptocurrency transaction volume growth by 12% year over year. Between July 2022 and June 2023, the transaction volume saw a surge, totaling approximately $31 billion.

The Middle East and North Africa's Crypto Economy

Data from Chainalysis indicates that the Middle East and North Africa (MENA) rank sixth in terms of the world's largest crypto economies. From July 2022 to June 2023, the MENA crypto economy had a valuation of approximately $390 billion. However, despite these impressive figures, the region's cryptocurrency market continues to lag behind North America and Western Europe.

Edited by Jonathan Stoker