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SBI holdings the Japanese financial giant to launch CFD trading for BTC, XRP and ETH

Photo of: Janeth Diamond
by Janeth Diamond

SBI holdings, the financial behemoth based in Japan is making preparations to launch contracts for differences or CFD for major cryptocurrencies traded like the BTC. 

Beginning this month-end, 31’ st August, SBI holdings is planning to start CFD trading services for major cryptos listed like BTC, ETH, ERP, and the likes. The newfangled service will be offered through its foreign exchange subsidiary called SBI FX trade. The announcement came on today, and the new platform has started accepting registrations on an immediate note. 

What is CFD trading?

For those who are unaware, Contract for Differences or CFD offers traders and investors the opportunities to profit from the movement of prices without owning the underlying asset. It is a relatively simple concept in which the asset movement is calculated between the trade entry and trade exit. The price change is computed without any need to consider what the actual value of the asset is. 

So how is this achieved? 

This is achieved through a contract between the client and the broker. It does not keep any stock or a commodity or in this case any cryptocurrency. Trading with CFDs is an attractive option with several properties that have increased the instrument’s popularity in the last few years.


The new CFD trading will allow SBI clients to trade crypto-based CFD contracts against the Japanese yen and dollar which will give way to the trading of 6 new pairs. CFD trading for cryptocurrency is a rarity in the Japanese market but SBI FX is the first financial giant or a popular financial name to bring out such a trading product. Cryptocurrencies and blockchain has not been a new sphere for SBI for SBI holdings have been actively involved with it in recent years.

The organization has been a key partner of the well-known blockchain company called Ripple. Ripple’s governance token is XRP which is the third largest cryptocurrency in the industry by market capitalization. SBI and Ripple collaboration goes back to 2016, when they come together and formed a joint venture called SBI Ripple Asia. The jointly formed organization ointended to promote the usage of XRP in major Asian financial markets and popularise it across it. It also is in talks with Ripple further to integrate Ripple-powered settlement across all Japansese ATMS.

Japan has not been new to the concept of CFD trading in cryptos .Last year a local crypto firm called Liquid launched Bitcoin CFD that enabled the traders to speculate price movements against the fiat cuirrencies Yen and Dollar.  In July 2020, Monex securities was the first online securities company located in Japan to launch crypto CFD services. 

CFD trading in cryptocurrencies will provide a higher leverage compared to the traditional trading. Lower margin requirements imply less capital outlay for the investor and greater potential returns. Not just that being exposed to a peg like a dollar can help the investor trade on a global scale allowing for more exposure.