Bitbank CEO Discusses SBI Group Integration and the Future of Cryptocurrency

As Japan's cryptocurrency market approaches a significant milestone with the transition to the Financial Instruments and Exchange Act in 2028, changes such as separate taxation and the approval of Bitcoin ETFs could drastically alter investor behavior.

At the forefront of this change is Bitbank, which is navigating its path through integration with the SBI Group. We spoke with Noriyuki Hirosue, CEO of Bitbank, which served as the title sponsor for "WebX2026."
Noriyuki Hirosue
CEO, Bitbank Inc.
Starting his career at Nomura Securities, he has held positions such as Executive Director at GMO Internet and President of GALA. In 2012, he became convinced that cryptocurrency technology would become "the Internet of Money" and founded Bitbank Inc. in 2014. In 2022, he established Japan Digital Asset Trust Preparation Co., Ltd. (JADAT) to prepare for a digital asset trust business aimed at institutional investors and corporations, serving as its CEO as well. He is dedicated to the healthy development of cryptocurrencies.

01PART How the System Will Change Exchanges

Bitbank's Strengths Under the Financial Instruments and Exchange Act

As investor behavior changes with the transition to the Financial Instruments and Exchange Act, separate taxation, and the approval of Bitcoin ETFs, where can Bitbank best leverage its strengths?
With the transition to the Financial Instruments and Exchange Act, cryptocurrency exchange businesses will shift from the Payment Services Act to the framework of the Financial Instruments and Exchange Act, taking on stricter responsibilities and roles as financial institutions. The elements that will be questioned are diverse, including compliance, financial soundness, and cybersecurity.

One of Bitbank's strengths is its high level of security. Since its inception, Bitbank has achieved zero hacking incidents and has worked to provide a safe trading environment. It has garnered support from many customers as a secure cryptocurrency exchange. After the transition to the Financial Instruments and Exchange Act, the importance of this strength is expected to become even more pronounced.

Another strength is that all cryptocurrencies handled are offered through order book trading. There are two trading formats for cryptocurrencies: sales office format and exchange format, but Bitbank has focused on the exchange format since its founding. Similar to securities, the order book model is considered the most advantageous trading environment for users. In exchange format, orders concentrate in milliseconds, making it challenging to build the system infrastructure. As a result of thorough preparation from an early stage, Bitbank has established a reputation for stability and availability.

With the introduction of separate taxation alongside the transition to the Financial Instruments and Exchange Act, trading is expected to become even more active due to the return of traders who have been trading overseas. In this context, the key will be system stability and a high level of security. I believe this is where Bitbank's strengths will shine the most.

The Role of JADAT in Bitcoin ETF Approval and Custody Functions

The approval of Bitcoin ETFs is also expected in 2028. What role is expected from the cryptocurrency industry in the formation of ETFs?
It is said that Bitcoin ETFs will be approved starting in 2028. The most important role expected from the cryptocurrency industry in the formation of Bitcoin ETFs is the custody function. How to safely manage the Bitcoin that backs the ETF will be a key question.

As mentioned earlier, Bitbank has a strong security system, and in addition, it has established a subsidiary "JADAT" through joint investment with Sumitomo Mitsui Trust Group. This structure is expected to play a significant role in the era of on-chain finance, where cryptocurrencies are financial products, such as Bitcoin ETFs.
When is the JADAT structure expected to be in place?
Obtaining a license will be a crucial key. There are two forms of trust companies: management-type trusts and operational-type trusts, and JADAT aims to acquire a management-type trust license. Preparations are underway with the goal of obtaining the license within this year, and plans are to advance the establishment of the structure with an eye toward 2028.

02PART Bringing Cryptocurrency into Daily Life

Credit Card That Can Be Paid with Bitcoin

Who are the users of the "EPOS CRYPTO Card for Bitbank," and how do they use it?
This card is available for customers who own a Bitbank account. Therefore, users are primarily core customers who regularly trade on Bitbank.

There is a strong underlying demand not only to trade cryptocurrencies but also to use them in daily life. I believe the ability to pay with cryptocurrencies, especially Bitcoin deposited with Bitbank, is what makes it appealing for everyday use.

I personally believe that Bitcoin is a structurally appreciating asset in the long term. From that premise, I see great value in the option to continue holding while also using it for daily payments. Paying with Bitcoin means that the subsequent appreciation makes it less likely for the value of fiat currency assets to diminish. In fact, if the price rises even after using it, it means you could use it without losing value.

The essence of this card's value lies in the idea that it is not just a payment method but allows users to hold assets while also using them in daily life.

A notable feature this time is that the partner is the Marui Group's EPOS Card. The Marui Group is a major company listed on the Tokyo Stock Exchange Prime Market, originally focused on retail business centered around department stores, but now fintech is one of its core businesses.

I believe this is the first time the Marui Group has engaged in cryptocurrency-related business. This collaboration between a major company and a cryptocurrency exchange has garnered attention as a successful case of service realization. Many voices have expressed a sense of security knowing that it is a service associated with a major company.

Additionally, there is a mechanism for receiving rewards in three types of cryptocurrencies based on monthly card usage, allowing users to gradually accumulate cryptocurrencies.

03PART The Next Financial Landscape with SBI

The Deciding Factor for Joining the SBI Group

What was the deciding factor for choosing to integrate with the SBI Group among many options?
The biggest trigger was the transition to the Financial Instruments and Exchange Act. Many things will change with the transition to the Financial Instruments and Exchange Act.

This is a change happening globally. Japan's cryptocurrency market has dealt with cryptocurrencies within a framework of Bitcoin and a few hundred altcoins. However, stablecoins have now emerged. As the connection with finance progresses, all assets, including Bitcoin ETFs, stocks, and investment trusts, will be tokenized, and the variety of products will change dramatically.

In that case, exchanges that only handle cryptocurrencies will lose their appeal in terms of products. There is a need to offer a wider range of products and services, and essential for that is the connection with financial functions such as banking and securities. Achieving this independently is becoming increasingly difficult.

In this regard, the SBI Group has made the promotion of on-chain finance one of its three major strategic goals and is working on it across the group. With a wide range of financial functions, including banking, securities, asset management, and insurance, the conditions for advancing on-chain finance are very well established.

With Bitbank's participation, the distribution area of cryptocurrency exchanges will be further strengthened, and it will lead the domestic market in scale. The SBI Group provides the most conducive environment for advancing on-chain finance in Japan, and after considering various angles, this decision was made.

The Role of Exchanges in the Era of Stablecoins

As stablecoins become more prevalent, how do you see the role of cryptocurrency exchanges changing?
Depending on the degree of prevalence, the current visible use cases are the remittance needs with overseas exchanges, particularly in US dollars. Bitbank has a considerable number of overseas users, and I see it becoming a highly practical service.

The SBI Group has JPYSC in yen, but I believe that yen-denominated stablecoins will spread more from corporate users than retail users, and Bitbank aims to meet the trading and remittance needs of institutional investors and corporate customers through the handling of JPYSC.

The role of cryptocurrency exchanges itself will not change significantly. However, Japan has lagged behind the global trend because there were no dollar-denominated stablecoins. While dollar-denominated stablecoins can be used worldwide, the lack of that option has been a constraint for the Japanese market.

As a member of the SBI Group, I believe the first step is to enhance user convenience by advancing the handling of stablecoins such as JPYSC, USDC, and RLUSD.

What is the status of licensing for handling stablecoins?
Handling stablecoins requires registration (license) for electronic payment methods and other transactions. Bitbank currently does not hold this license but will move toward obtaining it.

However, Bitbank already has the necessary foundation in place, so I believe it is not something with a high difficulty level. There are two reasons for this.

One is the track record of responding to regulations from financial authorities as a cryptocurrency exchange. The internal management, compliance, and anti-money laundering measures are already reasonably established.

The other is that stablecoins are technically cryptocurrencies, and their custody and transfer are an extension of the daily operations Bitbank handles.

I believe that if we advance the formal system preparation for obtaining the license, we can acquire it early and proceed with handling stablecoins.

04PART An Open and Fair Society

How will you realize the vision of "an open and fair society" as a member of the SBI Group in the next stage?
The activities of cryptocurrencies and on-chain finance ultimately lead to "an open and fair society." Since what Bitbank has been working on is already directed toward that goal, there will be no significant change in the overall direction.

We will connect the customer base and financial functions of the SBI Group with cryptocurrencies and expand into on-chain finance.

The realization of "an open and fair society" lies ahead as we accumulate these efforts. We are steadily progressing in that direction through the technology of cryptocurrencies.

By strengthening group collaboration, this vision can surely be realized. The first step is to enhance collaboration with the financial functions and customer base of the SBI Group as a member of the SBI Group and provide better services to customers. This will be our most important principle, and we will continue to advance as we have in the past.