Key Takeaways
- • Monex Group, Inc. (TSE: 8698) will acquire a majority stake in 3iQ Digital Holdings, Inc., a Toronto-based crypto asset manager licensed in Ontario, according to a December 28, 2023 PR Newswire Canada release.
- • 3iQ is described as North America's first issuer of regulated exchange-listed funds for Bitcoin and Ethereum, and was among the first to list Bitcoin and Ethereum ETFs on the Toronto Stock Exchange.
- • The deal extends Monex's asset management business into institutional crypto asset management, targeting institutional investors and crypto exchanges globally.
- • 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 counsel.
- • The release does not disclose the purchase price or the size of the stake acquired.
Summary
Monex Group, Inc., a Tokyo Stock Exchange-listed Japanese financial group with online brokerage, crypto exchange and asset management operations, will acquire the majority stake in 3iQ Digital Holdings, Inc., according to a joint release issued by Monex and 3iQ on December 28, 2023 via PR Newswire Canada. The release does not disclose the transaction value or the precise percentage being acquired.
3iQ is a Toronto-based crypto asset manager licensed in Ontario. The company says it was the first in North America to launch regulated exchange-listed funds for Bitcoin (BTC) and Ethereum (ETH), and it was among the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange. According to the release, 3iQ recently became the first globally to integrate staking within an Ethereum ETF. It has also unveiled the 3iQ Managed Account Platform (QMAP), which it describes as a suite of crypto hedge fund managed accounts designed to connect institutional investors with digital asset strategies.
Monex framed the acquisition as a way to strengthen its asset management business. Yuko Seimei, CEO of Monex Group, said the company aims to capture the crypto asset management needs of institutional investors and crypto asset exchanges worldwide, which it expects to grow. The release notes that 3iQ plans to offer asset management services on an outsourced basis, in response to major crypto exchanges diversifying into asset management.
Frederick T. Pye, Chairman and CEO of 3iQ, said the partnership would help the firm expand regulated digital asset products globally, and specifically highlighted collaboration with Coincheck, Monex's Japanese crypto exchange, which he said has 1.8 million customer accounts. The release positions Coincheck as a channel for 3iQ's institutional-oriented crypto products.
Advisers were named in the release: TD Cowen acted as financial advisor to Monex, with Osler, Hoskin & Harcourt LLP as legal advisor. On the seller side, Cinaport Capital Inc. acted as financial advisor and Wildeboer Dellelce LLP as legal advisor. Contacts for both companies were listed for media and investor inquiries.
3iQ is a Toronto-based crypto asset manager licensed in Ontario. The company says it was the first in North America to launch regulated exchange-listed funds for Bitcoin (BTC) and Ethereum (ETH), and it was among the first to introduce Bitcoin and Ethereum ETFs on the Toronto Stock Exchange. According to the release, 3iQ recently became the first globally to integrate staking within an Ethereum ETF. It has also unveiled the 3iQ Managed Account Platform (QMAP), which it describes as a suite of crypto hedge fund managed accounts designed to connect institutional investors with digital asset strategies.
Monex framed the acquisition as a way to strengthen its asset management business. Yuko Seimei, CEO of Monex Group, said the company aims to capture the crypto asset management needs of institutional investors and crypto asset exchanges worldwide, which it expects to grow. The release notes that 3iQ plans to offer asset management services on an outsourced basis, in response to major crypto exchanges diversifying into asset management.
Frederick T. Pye, Chairman and CEO of 3iQ, said the partnership would help the firm expand regulated digital asset products globally, and specifically highlighted collaboration with Coincheck, Monex's Japanese crypto exchange, which he said has 1.8 million customer accounts. The release positions Coincheck as a channel for 3iQ's institutional-oriented crypto products.
Advisers were named in the release: TD Cowen acted as financial advisor to Monex, with Osler, Hoskin & Harcourt LLP as legal advisor. On the seller side, Cinaport Capital Inc. acted as financial advisor and Wildeboer Dellelce LLP as legal advisor. Contacts for both companies were listed for media and investor inquiries.
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