WebX 2024: SBI Chairman Yoshitaka Kitao Outlines Web3 Strategy and Future of Finance

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• DISCLAIMER
• WRITER’S INTRO

CONTENT

SBI Holdings Chairman Yoshitaka Kitao discusses Web3, blockchain, and the future of finance at WebX 2024. He outlines SBI’s strategies and partnerships in the evolving digital economy.

Keynote Speech by SBI Chairman Kitao

At the international Web3 conference “WebX,” organized by CoinPost Inc. and hosted by the WebX Executive Committee, Yoshitaka Kitao, Chairman of SBI Holdings, delivered a keynote speech.

At the beginning of his speech, Chairman Kitao mentioned, “The SBI Group has achieved rapid growth as a financial institution by thoroughly implementing customer-centricity,” and introduced the growth trajectory of their customer base and sales.

Regarding the Internet revolution, he pointed out that Big Tech companies have amassed enormous wealth under unfair competition due to data concentration. In this respect, he evaluated that decentralized Web3 technology has emerged. He stated that in the Web3 era, it will evolve while merging with the real world.

Kitao emphasized that new business opportunities are emerging and touched on the market size of DeFi (Decentralized Finance) as an example of using the DAO concept in finance.

He also introduced examples of utilizing the token economy related to digital securities that tokenize the asset value of real objects using blockchain technology.

Furthermore, regarding the development of AI (Artificial Intelligence), he expressed the view that it will become more transparent and democratized, and quoted the prediction from the Information and Communications White Paper that the metaverse (virtual space) market, which was 8 trillion yen in 2022, will grow to 123 trillion yen by 2030.

Chairman Kitao stated, “If that happens, the fusion with blockchain technology will fundamentally change the way manufacturing is done. It should become significantly more efficient.”

However, he also mentioned that for the spread of new innovations, it is essential to develop the business environment, including institutional reforms and regulatory aspects. He also referred to Japan’s position while various countries around the world, including Western countries, are advancing their systems for the expansion of Web3.

He stated that he “hopes for Donald Trump’s return to the presidency” who has declared the promotion of Bitcoin (BTC) and cryptocurrency-related policies.

Related:

Former US President Trump Indicates Policy to Use Bitcoin as “National Strategic Reserve,” Also Mentions Dismissal of SEC Chairman Gensler (in Japanese)

WebX 2024: Japanese Officials Discuss Web3 and Emerging Tech Policy

SBI’s Initiatives Towards the Web3 Era

Regarding SBI’s initiatives, he claimed that they have consistently maintained their basic strategy for venture capital (VC) investment processes. In terms of business development, he evaluated that the largest market maker (B2C2) has brought significant revenue to the group.

If sold, it could be expected to fetch 100 billion yen. He expressed the view that the valuation would be no less than 10 times. SBI has thus focused on expanding its quality customer base and product line-up.

Furthermore, he introduced various examples of the partnership with Ripple. He expressed the recognition that the lawsuit with the US SEC (Securities and Exchange Commission) is heading towards conclusion, and regarding the partnership with US Circle, which issues the stablecoin USDC, he claimed that they possess three unique licenses in Japan. He stated that eventually, they want to support the Japanese yen as well.

Regarding digital securities (ST), he stated that the Osaka Digital Exchange is envisioned to be global in scale from the start, and for the newly announced partnership with the Japan-originated blockchain game-specific chain Oasys (OAS), he stated that they aim for a large platform.

Related:

Characteristics and Future Prospects of Oasys | How to Buy and Compare Exchanges for OAS Cryptocurrency (in Japanese)

WebX 2024 | A Tour Through Day One Highlights

For the Japan International Exposition (Osaka-Kansai Expo) to be held from April to October 2025, SBI Holdings, Inc. will provide the Expo’s original NFT “Myakun!” and operate the “EXPO2025 Digital Wallet Service.”

The EXPO2025 Digital Wallet Service is a dual-method app using Web2 server management and Web3 blockchain management methods. Using SBT (Soul Bound Token) type NFTs, they plan to develop Web3 services that contribute to building momentum for the Expo, linking pavilions and external businesses.

“Myakun!,” jointly provided by SBI VC Trade Co., Ltd. and SBI NFT Co., Ltd., which operate cryptocurrency exchange businesses as subsidiaries, is an NFT (Non-Fungible Token) based on the Expo’s official character, Myaku Myaku. NFTs that can be acquired by participating in the real and virtual Expo will be prepared.