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According to research by Messari, the three largest online brokerage firms in Japan are experiencing rising revenues from their cryptocurrency exchange services.

In its Asian crypto landscape report, Messari noted that the operating income and net worth of exchange platforms operated by the top stock brokers in Japan are quickly overtaking those of their crypto-native rivals.

Comparison of Net Worth and Operating Income Between Exchanges Operated by Crypto-Native Firms vs Online Stock Brokers in Japan, August 2020: Messari

Messari researcher Mira Christanto tweeted that Japan’s three largest customer deposit-based brokers – SBI, Rakuten and Monex – all operate crypto exchange platforms.

Christanto also noted that many major asset managers are lobbying Japanese lawmakers to allow them to offer comprehensive cryptocurrency services and products, such as custodial solutions and exchange-traded funds.

“Major asset management funds are lobbying the government to allow custody and ETFs. When they get the green light, the banks are already waiting on the sidelines to join the action. “

The report praises Japan’s foremost financial regulator, the Financial Services Agency or FSA, for supporting inclusive crypto regulation for many years, making the island state a regional hub for the digital assets industry.

Messari identified 26 licenses issued for digital currency exchanges issued since the regulation in April 2017. BitFlyer is currently the largest Japanese exchange with more than $ 1 billion in assets under custody and a net worth of $ 146 million, as of August 2020 according to the Research.

Additionally, Japan’s institutional-grade Liquid Exchange was in the top ten crypto unicorns at the end of 2019 – valuing more than $ 1 billion dollars.

The report also identifies a host of high-profile mergers and investments that have taken place within the Japanese crypto industry.

In April 2018, the large exchange Coincheck was taken over by online real estate agency Monex Group. In October 2019, Financial Products Group, a listed financial services company, invested in Huobi Japan.