Japanese financial services company SBI and Saudi Aramco have signed a memorandum of understanding (MoU) to explore digital assets and semiconductors in an arrangement that could see both parties leverage their investment portfolios.
As per the announcement, the collaboration will support the expansion of Japanese digital asset service providers to Saudi Arabia with the arrangement designed to provide technical and regulatory support.
The two firms say the MoU will involve a “collaboration in digital assets,” with parties jointly seeking out investment opportunities. The arrangement will extend to launching several initiatives bordering on semiconductors, including establishing manufacturing plants in Japan and Saudi Arabia.
“Through this partnership with Aramco, the parties will, together, leverage their mutual knowledge and resources to discuss further business opportunities in advanced technology fields, such as semiconductors, digital assets, etc. and contribute to economic cooperation between Japan and Saudi Arabia,” according to the MoU.
If all goes according to plan, SBI says it will set up “SBI Middle East” in the Saudi capital of Riyadh to serve as the Middle East hub for its operations. In accordance with the MoU, both parties reserve the right to expand the scope of the alliance upon agreement, leaving the possibilities open for a full foray into generative AI.
Currently, digital currencies are not recognized by Saudi Arabia, but the government has shown an affinity for blockchain in finance, striking partnerships with the Hong Kong Monetary Authority (HKMA).
SBI has considerable experience in blockchain and semiconductors with MoU, referring to its recent partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation. Last month, SBI announced its participation in establishing a Digital Asset Joint Venture in the United Arab Emirates (UAE) in partnership with Standard Chartered (NASDAQ: SCBFF). The move will see the company dabble in decentralized finance (DeFi), tokenization, metaverse, and other Web3 applications in finance.
SBI sinks into Web3
In November, the financial giant launched a $600 million fund to invest in Web3 and AI, focusing on startups building solutions in fintech, healthcare, and climate technologies.
“Through the broad network of startup companies in which the Fund will invest, SBI Investment will more proactively promote activities towards solving social issues such as promoting DX and open innovation,” according to a company statement.
In 2022, SBI made a bold entry into the U.S. to offer over-the-counter (OTC) derivatives trading, leaving its footprint across the ecosystem.
Watch: Web3 is natural progression of technology
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