SBI Holdings' Strategic Expansion and Its Implications for Venture-Backed Growth

Japan’s SBI Holdings, a financial services giant with a long history of pioneering digital innovation, is reshaping the country’s venture capital landscape through aggressive investments in Web3, AI, and real-world asset tokenization. By leveraging its newly launched SBI Digital Space Fund and forging cross-sector partnerships, the company is not only diversifying its asset base but also positioning itself as a cornerstone of Japan’s next-generation innovation ecosystem. For investors, this strategic pivot raises compelling questions about SBI’s long-term value proposition in an era where fintech and decentralized technologies are redefining global markets.

A Capital-Intensive Vision: The Digital Space Fund and Beyond

In March 2023, SBI Holdings established SBI PE Holdings, Co., Ltd. to consolidate its private equity operations, with a stated goal of managing ¥1 trillion in assets by 2028 [1]. This ambition materialized in 2025 with the completion of the SBI Digital Space Fund, a ¥100 billion vehicle targeting high-growth sectors such as Web3, AI, and robotics [1]. The fund’s focus on frontier technologies aligns with Japan’s national push to become a global leader in digital transformation, particularly in post-pandemic recovery efforts.

The fund’s scope extends beyond traditional venture capital. By investing in semiconductors and healthcare, SBI is addressing critical infrastructure gaps in Japan’s innovation pipeline. For instance, its recent investment in THE CORE Co., Ltd.—a blockchain-based identity verification platform—highlights its commitment to securing digital ecosystems [1]. This move is particularly significant given Japan’s stringent regulatory environment, where trust and compliance are non-negotiable for tech adoption.

Cross-Sector Collaborations: Building the Onchain Economy

SBI’s strategic partnerships underscore its role as a bridge between traditional finance and decentralized systems. In August 2025, the company announced a joint venture with Startale Group to develop an onchain trading platform for tokenized stocks and real-world assets (RWAs) [2]. This platform, built on blockchain infrastructure, promises 24/7 trading, cross-border settlements, and institutional-grade security—features that could disrupt legacy capital markets.

The collaboration is part of a broader trend: SBI’s active participation in the RWA space. For example, its $11 million investment in DigiFT, a Singapore-based RWA exchange, supports tokenized real estate and bond products, expanding access to global investors [3]. Meanwhile, a partnership with Chainlink aims to tokenize real-world assets like real estate and bonds across multiple chains, targeting Japan and the APAC region [1]. These initiatives reflect SBI’s dual focus on scalability and regulatory compliance, two pillars of sustainable growth in the Web3 era.

Financial Resilience: A Foundation for Aggressive Expansion

SBI’s ability to execute these strategies is underpinned by robust financial performance. In Q1 FY2025, the company reported a record-high profit of ¥84.6 billion, with an annualized return on equity (ROE) of 24% [2]. Such profitability not only validates its business model but also provides the liquidity needed for large-scale investments. Looking ahead, SBI has set ambitious targets: ¥500 billion in pretax profit by FY2028 and a significant increase in overseas revenue contribution [4]. These goals hinge on its capacity to monetize its digital assets portfolio and expand into emerging markets.

Implications for Investors: A Long-Term Play on Innovation

For venture-backed growth, SBI’s ecosystem-driven approach offers multiple entry points. Its Digital Space Fund acts as a venture capital arm, while its partnerships with startups and infrastructure providers create synergies that amplify returns. For example, the integration of THE CORE’s identity verification tools into SBI’s onchain trading platform could reduce friction in cross-border transactions, enhancing user adoption.

However, risks remain. The Web3 and RWA sectors are still nascent, with regulatory uncertainties and technological bottlenecks. SBI’s success will depend on its ability to navigate these challenges while maintaining its financial discipline. Yet, given its track record—such as pioneering Japan’s first cryptocurrency exchange—SBI appears well-positioned to lead the charge.

Conclusion

SBI Holdings is no longer just a financial services conglomerate; it is a strategic architect of Japan’s digital future. By combining venture capital acumen with cross-sector collaboration, the company is building a resilient ecosystem that bridges traditional and decentralized finance. For investors seeking exposure to the next wave of innovation, SBI’s strategic expansion offers a compelling case study in how institutional players can harness Web3 and AI to drive long-term value.

Source:
[1] SBI Investment announces completion of fundraising for SBI Digital Space Fund [https://fxnewsgroup.com/forex-news/institutional/sbi-investment-announces-completion-of-fundraising-for-sbi-digital-space-fund/]
[2] Japan’s SBI Group Eyes Tokenised Asset Launch with Chainlink Partnership [https://www.financemagnates.com/cryptocurrency/japans-sbi-group-eyes-tokenised-asset-launch-with-chainlink-partnership/]
[3] RWA exchange DigiFT raises $11 million in new round led by Japan’s SBI Holdings [https://www.theblock.co/post/367745/digift-raises-11-million-in-new-round-sbi-holdings]
[4] SBI HOLDINGS INC (8473.T) Q4 FY2025 earnings call transcript [https://finance.yahoo.com/quote/8473.T/earnings/8473.T-Q4-2025-earnings_call-307033.html/]