Karla Barker 
Daiwa Securities Expands into Digital Asset Financing
Daiwa Securities, Japan’s second-largest securities firm by client assets, has started introducing clients to a crypto-backed lending service through Fintertech. This partnership allows customers to use Bitcoin and Ethereum as collateral for yen loans ranging from ¥5 million to ¥500 million.
The service is available across all domestic branches and primarily targets high-net-worth individuals and business owners. These clients often need liquidity for property purchases or business expansion but prefer not to sell their cryptocurrency holdings. I think this reflects how digital assets are becoming more integrated into traditional wealth management strategies.
How the Crypto-Backed Loan Program Works
Daiwa acts as a referral partner in this arrangement, while Fintertech handles the actual product explanation, sales process, and loan administration. The collateral ratio is set at 50% for both Bitcoin and Ethereum, which seems fairly standard for this type of lending.
For individual clients, lending limits follow Japan’s regulatory requirements. They’re capped at one-third of annual income, except when the funds are used for real estate purchases. This structure provides some protection against over-leveraging, which is always a concern with volatile assets like cryptocurrency.
What’s interesting here is that it’s quite rare for a major Japanese securities firm to offer access to services where clients can obtain yen financing secured by crypto assets. Japan’s regulatory environment has traditionally been cautious about digital assets, so this move suggests some shifting attitudes.
Traditional Finance Meets Digital Assets
This development shows how major financial institutions are gradually incorporating cryptocurrency exposure into their client offerings. Digital assets appear to be transitioning from purely speculative investments to recognized components of diversified portfolios, particularly for wealthier clients.
By introducing crypto-backed lending, Daiwa expands its financial services while strengthening connections between traditional markets and the digital economy. It’s part of a broader global trend where financial intermediaries are adapting their services to accommodate emerging asset classes.
Global Context and Market Position
Crypto-backed lending isn’t entirely new internationally. US-based BlockFi previously offered dollar-denominated loans secured by Bitcoin before restructuring its business. Canada’s Ledn continues to provide similar services, allowing clients to maintain crypto exposure while accessing fiat currency liquidity.
These models have proven popular among investors who want to borrow against their assets without triggering taxable sales events. In many markets, crypto-backed lending is positioned as part of broader wealth management services, often integrated with custody and brokerage offerings.
What makes Daiwa’s approach notable is its position as a well-established securities firm operating under Japanese regulation. The nationwide branch network implementation suggests they’re taking a measured approach, emphasizing both risk management and client liquidity needs.
This milestone might indicate that traditional and digital finance will continue converging in Japan, though probably at a cautious pace that respects the country’s regulatory framework.