Top-tier, Japan-based brokerages are reportedly going head to head with local crypto-native exchanges, in an effort to claim crypto asset market share.

Specifically, per insights disclosed by Messari, the three Japan-based highest ranking online brokerage entities are reportedly witnessing a jump, revenue-wise, from their crypto exchange service. 

As detailed in its Asian Crypto Landscape report, Messari reportedly claimed that the distance between the operating revenue and net worth of exchange platforms, run by local major securities brokers, and their crypto-native competitors, is being drastically shortened. 

Messari researcher Mira Christanto reportedly took to Twitter to share that the three highest-ranking brokers, clients deposit-wise – SBI, Rakuten, and Monex – are all supporting a functional crypto exchange platform of their own. 

Christanto further claimed that numerous major asset managers are reportedly running lobbies to local regulators, to let them make a wider scope of crypto services available, nominally custody solutions and exchange-traded funds.

“Large asset management funds are lobbying the government to allow custody and ETFs. If they get the green light, the banks are already waiting by the sidelines to get in on the action.”

The report also named Japan’s top financial regulator, the Financial Services Agency (FSA) for providing their support inclusive crypto regulations for years, helping Japan gain the reputation of a regional hub for the crypto asset sector.

Per Messari, a total of 26 licenses have reportedly been granted to crypto exchange entities, ever since the regulation was in effect starting April 4 years ago.