Saudi Aramco, the largest oil and gas company by market cap, has partnered with SBI Holdings, a financial services group in Japan, to explore a potential collaboration for investing in digital assets. SBI also contemplates the launch of a subsidiary in the Middle East to expand its influence in the region.
Oil Colossus Saudi Aramco Mulls Investing in Digital Assets
Saudi Aramco, the largest oil and gas company, might be on the brink of investing in digital assets. The company, which has a market capitalization of over $2 trillion, has signed a memorandum of understanding (MOU) with SBI Holdings, a financial services company in Japan, to explore a collaboration in various fields of investment, including digital assets.
The MOU establishes that both companies will collaborate “in the field of digital assets and co-investments leveraging both parties’ investment portfolios related to digital assets.” SBI has an extensive investment in companies that use digital assets in their business models. The company has recently partnered with stablecoin company Circle and has a long-time collaboration with Ripple, a crypto-based payments company.
The memorandum details that Saudi Aramco will identify and support Japanese startups in the digital assets area that wish to expand their business to the Middle East, supporting their entry and growth in the region. The alliance also extends to the field of semiconductors, as the document states that the company might launch several undetermined projects in this industry, establishing factories in Saudi Arabia and Japan through Powerchip Semiconductor Manufacturing Corporation, a Japanese organization.
SBI Holdings revealed plans to open a subsidiary called “SBI Middle East” to expand the company’s influence into the region and explore new business avenues.
Saudi Aramco has invested in blockchain-linked companies before. Its first deal in the arena happened in 2020 when the company invested $5 million in VAKT, a global commodities blockchain digitization business. Also, the company signed an MOU with Droppgroup, a Web3 tech development platform, in February.
What do you think about Saudi Aramco’s potential crypto investments? Tell us in the comments section below.
via Sergio Goschenko
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