Saudi Aramco and SBI Holdings Alliance: Focus on Cryptos

Global oil giant Saudi Aramco last week formed a strategic alliance with Japanese financial group SBI Holdings. Together, they are exploring investment opportunities in digital assets.

An opportunity for Saudi Aramco

Saudi Aramco, the world’s leading oil producer, with a market capitalization of over $2,000 billion, last week signed agreements with SBI Holdings, a Japanese financial services group. The aim is to explore collaboration in various investment areas, including digital assets.

This strategic alliance opens up new prospects for Saudi Aramco, historically positioned in the traditional oil and gas sectors. It also enables the company to diversify its activities by entering the promising world of blockchain and cryptos.

This digital shift is nothing new for the oil behemoth. Back in 2020, it took stakes in crypto companies such as VASKT, a startup specializing in blockchain applications for commodities.

More recently, in February 2023, Saudi Aramco strengthened its ties with DroppGroup, leader in Web3 solutions.

A promising merger between two giants

According to the terms of the agreement, Saudi Aramco and SBI Holdings will join forces to make massive investments in cryptos, making the most of their respective portfolios linked to these emerging digital assets.

This partnership will accelerate the strategy already pursued by the Saudi behemoth. The two giants aim to work together to explore the many potential opportunities in cryptocurrencies, but also in semiconductors, a promising technology sector.

For its part, the Japanese conglomerate SBI Holdings is establishing itself as a leading global player in the world of blockchain and cryptos. Indeed, the group has already invested heavily in leading fintech companies and has forged partnerships with crypto industry heavyweights such as Ripple and Circle. The expertise of SBI Holdings in the field will be invaluable for Saudi Aramcoa newcomer to this world.

Geographical expansion for SBI Holdings

The agreement also includes a partnership to support SBI Holdings’ expansion in the Middle East. In this way, the Saudi Aramco is committed to identifying and supporting Japanese blockchain startups looking to expand in the region.

For its part, to extend its influence in the Middle East, SBI Holdings has already announced its intention to open a regional subsidiary there, to be named “SBI Middle East. The aim is clear: to explore new business opportunities in this high-potential market.

This tie-up between the Saudi oil giant and the Japanese financial conglomerate reflects the accelerating adoption of cryptocurrencies by major global groups. It could lead to a host of ambitious projects combining oil and blockchain, and enable the emergence of a dynamic blockchain ecosystem in the Middle East.