Monex Group Completes Acquisition of Majority Stake in 3iQ Digital Holdings

Tokyo-based financial services firm Monex Group has completed the acquisition of a major stake in 3iQ Digital Holdings.

This acquisition was first announced in December 2023. Consequently, 3iQ and its affiliated companies are now part of Monex Group.  To help 3iQ grow quickly, Monex Group has put $7.5 million into 3iQ’s Managed Account Platform (QMAP).

Monex Group Will Strengthen Its Position In Managing Digital Assets For Institutions

QMAP lets institutional investors use lots of different crypto hedge funds, featuring alpha-focused approaches to meet the intricate demands of institutions all over the world. This investment significantly strengthens 3iQ’s position in managing digital assets for institutions.

The company pioneered the launch of a Bitcoin fund on the Toronto Stock Exchange in Canada. Additionally, it provided support to CoinShares in developing a cryptocurrency ETF. Presently, it wants to expand its cryptocurrency services under the Monex umbrella.

QMAP implements a rigorous due diligence process to choose fund managers with established track records of successfully managing risks throughout different market cycles. These managers possess operational excellence, specialized expertise, and institutional backgrounds which they bring to the forefront.

3iQ utilizes the platform’s managed account structure to fully control its assets. This improves risk management capabilities and transparency. The strategy removes the additional layer of fees often present in traditional fund-of-funds structures. It allows investors to convert their allocations or select from pre-designed model portfolios without extra costs.

The Partnership Will Offer Innovation In Investment Solutions For Institutional Investors

The Chief Executive Officer of Monex Group, Yuko Seimei, expressed confidence that QMAP will soon emerge as the premier platform for sophisticated investors. These investors are provided opportunities to invest in a diverse range of crypto hedge funds.

The investment in QMAP and the acquisition of 3iQ align with Monex Group’s objective of enhancing its asset management trade. The firm has recently expanded its services in the APAC area, planning to boost employment by 80% in the sales department.

Monex Group’s primary subsidiary, Monex Inc., engages in online securities trading and manages around 2 million accounts.

In 2010, the firm incorporated its operations by acquiring its fully owned subsidiary, ORIX Securities Corporation, via a share exchange. Subsequently, ORIX Corporation became the largest shareholder with a 22.5% stake.  The platform has continued to expand its operations and product offerings to gain more clients in other regions.