Japanese financial services firm SBI Holdings and Saudi Arabian state-owned oil giant, Saudi Aramco, are contemplating a strategic collaboration in the realms of digital asset investment and semiconductor production projects.
Their intentions were formalized through the signing of a memorandum of understanding (MoU) on December 7th, with plans to establish SBI Middle East in Riyadh as the central hub for regional operations.
As per the MoU, SBI Holdings and Saudi Aramco will explore opportunities to join forces in the digital asset space, including potential co-investments in digital asset portfolios.
Additionally, the two entities may jointly identify Japanese digital asset startups that have the potential to expand their presence into Saudi Arabia.
Furthermore, they are considering launching semiconductor production ventures in both countries.
It’s worth noting that the scope of this partnership could expand further with mutual agreement between the two organizations.
Saudi Aramco, currently the world’s second-largest corporation by revenue, is looking to leverage these investments to enhance its supply chain capabilities.
While it’s worth noting that Saudi Arabia does not legally recognize cryptocurrencies, the government has exhibited a keen interest in Web3 technologies.
Notably, the MoU also highlighted SBI Holdings’ existing partnership with Taiwan-based Powerchip Semiconductor Manufacturing.
READ MORE: Defunct Crypto Firms FTX and Alameda Move $23.59 Million in Digital Assets to Top Exchanges
This move by SBI Holdings marks its latest effort to establish a significant presence in the Middle East.
In November, the company entered into a joint venture with the fintech investment arm of British bank Standard Chartered, SC Ventures, to create an investment company in the United Arab Emirates (UAE).
This initiative aims to invest in various aspects of market infrastructure, risk management, compliance tools, DeFi, tokenization, consumer payments, and the metaverse.
Prior to this, in September, SBI Holdings partnered with UAE-based TradeFinex to establish a joint venture in Japan, focused on localizing TradeFinex’s XDC Network enterprise blockchain.
Notably, SBI Holdings holds the distinction of being Ripple’s largest external shareholder and has been in partnership with the blockchain company since 2018.
Furthermore, in late November, SBI Holdings announced another MoU, this time with Circle, aimed at boosting the circulation of USD Coin and the proliferation of Web3 services in Japan, contingent on regulatory approvals.
