SBI Holdings has moved to expand its crypto presence by opening talks with Bitbank on a possible share acquisition. The planned deal could bring Bitbank under SBI as a consolidated subsidiary, strengthening its exchange network in Japan.

While key terms remain undecided, the discussions come soon after SBI’s Bitpoint merger, signaling faster consolidation in the country’s digital asset market as firms prepare for regulatory changes.

Move Follows SBI’s Bitpoint Merger

The talks come soon after another SBI crypto move. In April 2026, SBI VC Trade absorbed Bitpoint Japan through a merger.

That deal added another exchange business to SBI’s crypto operations. The Bitbank talks now show further expansion in the same market.

Japan’s crypto sector is also moving through a period of change. Regulators are discussing how crypto assets should be handled under financial market rules.

SBI’s latest step comes as large firms prepare for tighter oversight. It may also help the group combine exchange services under one structure.

If the deal is completed, SBI would control several major crypto platforms. That would increase its presence in Japan’s digital asset market.

Bitbank’s IPO Path Remains in Focus

Bitbank had earlier prepared for a Tokyo Stock Exchange listing. Reports said the company aimed to list by mid-2025.

The company also raised about 7 billion yen in 2021. That funding came through a capital and business alliance with Mixi.

Mixi became a major shareholder with a 26.2% stake. The investment helped Bitbank build an independent growth plan.

The new SBI talks may affect Bitbank’s listing path. Investors will watch how the share talks develop from here.

Bitbank has also promoted its security record since its founding. The company has said it has had zero hacking incidents.

Its stated vision is “realizing an open and fair society.” SBI may see that record as useful for wider financial services.

JPX is moving closer to a possible crypto ETF launch in Japan, with 2027 seen as the earliest target. CEO Hiromi Yamaji said preparations can begin once legal reforms and tax rules become clear.

The move comes as Japan reviews how crypto assets are classified and taxed, while asset managers show growing interest in regulated crypto investment products.

Jpx Waits for Legal Clarity Before Etf Launch

Japan Exchange Group may move ahead with crypto ETFs once the legal process is complete. The company operates Japan’s main securities markets. So, its role could shape future crypto investment products.

Yamaji told Bloomberg that JPX is ready to prepare when laws and taxes are clear. He said, ‘If the legal framework is in place and tax treatment is clear, it can be done anytime.’

The earliest listing could happen in 2027. However, the timing may shift to 2028 if law changes take longer.

Japan has not yet approved spot crypto ETFs in the same way as some other markets. For that reason, market operators are waiting for clear rules before listing such products.

Japan Reviews Crypto Tax Treatment

Japan is also reviewing how crypto gains should be taxed. Current rules treat many crypto gains as miscellaneous income. That can lead to tax rates as high as 55%.

A new tax proposal may place some crypto assets under financial product rules. If passed, certain gains could face a flat 20% tax rate. This would be closer to the system used for stocks.

The proposal may also allow losses to be carried forward for up to three years. That rule already applies to some financial products in Japan. It could help investors manage losses from market swings.

However, the plan may not cover every crypto activity. Staking, lending rewards, and NFTs may still need separate treatment. Final details will depend on future legislation.

Asset Managers Show Interest in Crypto ETFs

Yamaji said many asset managers have shown interest in crypto ETFs. These funds could give investors exposure to crypto through regulated markets. They may also offer a familiar structure for retail and institutional buyers.

Japan’s Financial Services Agency has supported wider debate on crypto reclassification. The move could bring crypto closer to traditional financial products. It may also support rules on market abuse and investor protection.

Still, the process remains unfinished. Lawmakers must decide how crypto assets should be defined and taxed. Regulators must also decide which assets can qualify for ETF products.

JPX is now watching the pace of reform. A 2027 launch remains possible, but the schedule depends on final rules. The next stage will decide how Japan opens its listed market to crypto ETFs.

Brazil’s central bank, Banco Central do Brasil (BCB), has barred the use of virtual assets in certain regulated international payment and transfer services, tightening rules for cross-border payment providers operating under the country’s eFX framework.

On Thursday, BCB published Resolution BCB No. 561, amending existing rules for eFX, a regulated category covering international payments and transfers. The resolution states that payments or receipts between an eFX provider and its foreign counterparty must be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account, with the use of virtual assets prohibited.

The restriction also applies under transitional rules for eFX providers that are not yet listed among approved provider categories. Those firms may continue providing eFX only if they apply for authorization from the central bank by May 31, 2027, but their payments and receipts must still use foreign exchange transactions or non-resident real accounts, not virtual assets. 

The rule does not amount to a blanket ban on crypto transfers in Brazil. Instead, it closes off the use of crypto and stablecoins inside the regulated eFX channel, reinforcing the central bank’s effort to keep cross-border payment flows within supervised foreign exchange rails.

English translated excerpt of the BCB Resolution No. 561. Source: BCB 

Brazil tightens oversight of crypto-linked cross-border flows

Brazil has been moving to fold virtual assets into its financial and foreign exchange rulebook as stablecoins become a larger part of the country’s crypto activity. 

In November 2025, the central bank detailed new rules for virtual asset service providers, including authorization requirements and rules for services involving virtual assets in the foreign-exchange market.

The central bank’s push follows concern over the use of stablecoins for payments and cross-border transfers. In February, Reuters reported that BCB Governor Gabriel Galipolo said that crypto use had surged in the country over the previous two to three years, with about 90% of flows linked to stablecoins. He said that raised concerns around taxation, money laundering and asset backing.

Related: Spain emerges as leading EURC retail market in Europe, Brighty data shows

The eFX rule comes as Brazil’s central bank has also signaled concern over stablecoins issued by companies outside its regulatory perimeter. In a technical note sent to Congress and seen by Cointelegraph Brasil, the central bank said stablecoins issued by entities not subject to BCB supervision could face a ban or strict conditions in the domestic market.

The document said real-denominated stablecoins issued outside BCB supervision may pose risks to regulatory equality and monetary sovereignty, while foreign-currency stablecoins raise concerns around jurisdiction, capital flows and fragmentation of the payments system. 

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

TLDR

• Japan Exchange Group aims for 2027 cryptocurrency ETF debut contingent on regulatory completion
• FIEA reform positions digital assets as financial instruments enabling ETF framework
• Growing institutional appetite drives expansion of crypto ETF product lineup
• Bitcoin ETF products attract capital while Ethereum offerings face redemptions
• Japan Exchange Group mirrors worldwide institutional adoption patterns

Japan Exchange Group is pushing forward with cryptocurrency ETF development plans, establishing 2027 as its deployment target while regulatory transformations continue. This effort signals rising institutional appetite for compliant digital asset investment vehicles throughout Japan. Simultaneously, policymakers are refining taxation structures and legal parameters necessary for domestic exchange crypto ETF listings.

Legal Framework Development Influences Crypto ETF Schedule

Japan Exchange Group is synchronizing its cryptocurrency ETF blueprint with emerging legal and taxation policy changes. The bourse operator intends to roll out crypto ETF offerings following complete regulatory framework establishment. Nonetheless, launch schedules remain adaptable based on legislative processes and governmental policy modifications.

The Financial Instruments and Exchange Act currently classifies digital currencies as regulated financial instruments. This regulatory evolution establishes the foundational legal infrastructure necessary for cryptocurrency ETF deployment in Japan. As such, oversight bodies can now incorporate crypto ETF mechanisms into established securities regulatory systems.

Taxation frameworks represent another pivotal element affecting cryptocurrency ETF authorization schedules. Government officials are continuously evaluating appropriate tax treatment for crypto ETF investment returns among domestic market participants. Accordingly, conclusive taxation policy determinations will significantly impact cryptocurrency ETF market availability timing.

Strategic Vision Propels Crypto ETF Portfolio Growth

Japan Exchange Group has embedded cryptocurrency ETF innovation into its mid-range strategic roadmap. This blueprint emphasizes portfolio diversification extending past conventional stock listings and futures contracts. Consequently, the exchange seeks to reinforce its competitive standing across international capital markets.

Investment management firms have already demonstrated considerable enthusiasm for introducing crypto ETF investment vehicles. Such enthusiasm underscores escalating institutional requirements for regulated digital currency market access. The bourse has established operational capabilities supporting crypto ETF onboarding following regulatory green lights.

The cryptocurrency ETF initiative additionally complements objectives for income stream diversification. Japan Exchange Group persistently develops emerging investment categories to sustain market competitiveness. Introducing crypto ETF instruments may boost investor engagement and transaction activity levels.

International Patterns Reinforce Crypto ETF Development

Worldwide cryptocurrency ETF investment flows demonstrate varied yet substantial participation throughout principal financial centers. Bitcoin-focused investment products lately attracted fresh capital, demonstrating revitalized investor confidence in crypto ETF vehicles. Ethereum-associated funds encountered persistent withdrawals, revealing divergent market attitudes.

Such international dynamics inform Japan’s cryptocurrency ETF preparation initiatives. Regulatory authorities seek to introduce crypto ETF products within secure and supervised market conditions. Japan’s methodology represents equilibrium between financial innovation encouragement and system-wide stability preservation.

Institutional participation momentum persistently fuels crypto ETF expansion across global markets. Japan Exchange Group aims to capitalize on this movement through local cryptocurrency ETF offerings. Should regulatory modernization advance according to projections, inaugural crypto ETF products may arrive by 2027.

Ethereum traded at $2,280.47 at press time, with 24-hour volume at $10.18 billion, according to crypto.news data. 

ETH gained 0.75% in the past day but remained down 1.56% over the last seven days. Its market cap stood at $275.23 billion, based on a circulating supply of 120 million ETH. 

The price action comes as analysts track opposing signals from exchange supply and derivatives data.

Exchange supply ratio signals dip risk

CryptoQuant analyst PelinayPA said Ethereum may still face downside risk. The analyst pointed to a sharp fall in the exchange supply ratio.

In past cycles, a falling ratio often appeared near price bottoms. Lower exchange supply can mean reduced selling pressure, but the analyst said the current setup shows a gap.

PelinayPA said the ratio has dropped to low levels, but ETH has not formed a matching price bottom. The analyst said this could mean the market has not fully priced in the supply move.

The analyst added that “a delayed downward move” remains possible. The view suggests ETH may still need to close the gap between price and exchange supply behavior.

Negative funding raises squeeze debate

Another CryptoQuant analyst, Darkfost, gave a different view. The analyst said Ethereum’s short-side positioning has become crowded.

According to the analysis, Binance funding rates have stayed negative for an extended period. Darkfost compared the duration of negative funding to levels last seen during the FTX collapse period in November 2022.

The analyst said Ethereum has recovered more than 30% from its February 6 low. Still, many traders continue to hold short positions despite the rebound.

Darkfost said the monthly average Binance funding rate stands at -0.0018. This points to strong demand for downside bets among traders.

Short liquidations may support recovery

Darkfost said rising short liquidations show that some bearish traders are already under pressure. If ETH keeps moving higher, more short positions may close.

Forced short closures can add buying pressure in the market. This can support price recovery when many traders hold the same bearish position.

However, this setup does not remove downside risk. Ethereum still faces a mixed market structure, with spot supply data warning of a possible dip.

The current Ethereum outlook remains divided. One on-chain signal points to a possible delayed move lower, while derivatives data shows the risk of a short squeeze.

The crypto market ticked higher on Friday. Bitcoin BTC$77,292.85 rose 1.25% since midnight UTC to trade at $77,250, and the CoinDesk 20 Index (CD20) added 0.7% with 14 members in the green.

The increase comes after bitcoin found support at $75,000, a price it had earlier found difficult to climb above, on Wednesday. It has now been trapped between $75,000 and $80,000 since April 19. Negative funding rates on futures exchanges indicate that traders are generally positioned for a decline.

U.S. equity index futures were little changed. Nasdaq 100 futures cooled after the week’s Big Tech earnings, while S&P 500 futures are marginally in the black, up 5 points.

Precious metals fell, with gold and silver losing 1% and 0.7%, respectively, and the altcoin market is a mixed bag; AXS and HYPE rose by around 3%, but DeFi tokens MORPHO and AAVE are both in the red.

Derivatives positioning

• Open interest in bitcoin futures holds at $19 billion, roughly unchanged week-over-week, with speculative activity showing little conviction.
• Funding rates are broadly negative across multiple venues at around -2% annualized, except on Deribit, which saw a spike to 37%. The three-month annualized basis sits at 1.5%, also flat on the week, pointing to continued institutional caution.
• Options sentiment leans bullish: put/call volume over the past 24 hours is 58% in favor of calls, and the one-week delta skew has eased to 8.6% from 9.5%, indicating moderating demand for downside protection.
• The implied volatility term structure is in contango, with the front-end around 29% rising to ~45% at the March ’27 tenor, suggesting the market is pricing longer-dated uncertainty rather than immediate tail risk.
• CoinGlass data shows $149 million in 24-hour liquidations, with a 30-70 split between longs and shorts. BTC ($50 million) and ETH ($29 million) led in terms of notional liquidations.
• The Binance liquidation heatmap indicates $75,400 as a core liquidation level to monitor in the event of a price drop.

Token talk

• The CoinDesk Memecoin Index (CDMEME) was the best-performing benchmark, surging by 1.8%, followed by the CoinDesk Computing Select Index (CPUS), which added 1.4%.
• CoinDesk’s DeFi Select Index (DFX) lagged its peers, and was recently unchanged despite broader market optimism.
• Monad (MON) led the altcoin market on Friday, rallying by 6.7% over 24 hours. There were also notable gains for PENDLE, RAY and TAO, all up between 4.2% and 5.35%.
• The same can’t be said for WLFI$0.05701, the DeFi token linked to President Donald Trump’s family. That dropped by more than 2.6% since midnight following a governance vote on token lock-ups. It has now lost more than 77% since it was introduced in September.
• CoinDesk’s Overnight Rate (CDOR), which tracks lending and borrowing rates on Aave, has returned to normal market conditions after the KelpDAO hack, a sign of strength in the DeFi sector.

If traditional finance is a well-regulated city, DeFi’s experimental edge is the desert just beyond the walls—lawless, creative, and occasionally full of gold. This is where protocols stop copying TradFi and start inventing entirely new financial primitives. It’s also where things break… a lot.

Let’s get into it.

The Rise of New Primitives

Experimental DeFi isn’t about slightly improving lending or swapping—it’s about redefining what those things even mean.

You’ll see:

• Liquidity as a game mechanic (protocols turning LPing into PvP strategy)
• Time-based finance (locking assets into future yield markets)
• Reflexive token systems where price feeds back into utility
• Protocol-owned liquidity (POL) replacing mercenary capital

A classic example is Olympus DAO, which introduced bonding as a way for protocols to own liquidity instead of renting it. It sounded insane at first—until half the market copied it.

Then there’s Yearn Finance, which turned yield farming into a set-it-and-forget-it strategy engine—now a core building block across DeFi.

The pattern? Today’s “weird experiment” becomes tomorrow’s standard—if it survives.

What Fails vs What Sticks

Most experimental DeFi projects fail. Not because the ideas are bad—but because the execution, incentives, or timing are off.

What Usually Fails:

• Unsustainable yields (APYs that rely purely on token emissions)
• Overly complex mechanics (if users need a PhD, they’re out)
• Reflexive death spirals (price down → confidence down → liquidity gone)
• Narrative-only protocols (hype without real usage)

We’ve seen entire ecosystems collapse under this weight—think of the fallout from Terra collapse, where experimental stablecoin mechanics unraveled at scale.

What Actually Sticks:

• Clear utility + real demand
• Simple UX wrapped around complex logic
• Aligned incentives between users and protocol
• Composable design (others can build on it)

Protocols that win don’t just innovate—they integrate into the broader DeFi stack.

How to Analyze Early-Stage Protocols

Looking at experimental DeFi is less about reading dashboards—and more about reading intent.

Here’s a sharper framework:

1. What’s the Core Innovation?

Is this actually new—or just a remix of existing primitives?

2. Where Does Yield Come From?

If the answer is “token emissions,” be careful. If it’s real fees, arbitrage, or productivity, now we’re talking.

3. Who Benefits Most?

Early insiders? The protocol treasury? Or long-term users?

4. Can It Survive Without Growth?

If the system collapses when new users stop coming in, that’s not DeFi—that’s musical chairs.

5. Is It Composable?

Can other protocols plug into it? If not, it may never escape its own sandbox.

The “Would You Actually Use This?” Test

This is where most experimental DeFi falls apart.

Forget the whitepaper. Forget the tokenomics. Ask one simple question:

Would you use this if there were no rewards?

If the answer is no, then the protocol is likely:

• Subsidizing behavior, not creating value
• Dependent on hype cycles
• One market downturn away from irrelevance

But if the answer is yes—even without incentives—that’s where things get interesting.

That’s how you spot early conviction plays before the crowd arrives.

The Trade-Off: Innovation vs Risk

Experimental DeFi is where the highest upside lives—but it comes with:

• Smart contract risk
• Economic design flaws
• Governance attacks
• Liquidity shocks

It’s not about avoiding risk—it’s about understanding which risks are worth taking

Final Thought

Experimental DeFi is messy, chaotic, and often irrational.

But it’s also where the future gets prototyped in real time.

Most ideas will fail. A few will reshape the entire industry.

Your edge isn’t predicting which one wins—it’s recognizing why something might.

Because in the Wild West of DeFi, survival isn’t luck.

Its design.

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