B2C2, the crypto market maker 90% owned by Japan's SBI Holdings, has held takeover talks with several potential acquirers over the past 18 months, according to five people with knowledge of the matter.
Valuation has been a sticking point in the discussions, said two of the people, who spoke on condition of anonymity because the matter is private.
TheLondon-based firm is said to be looking for a valuation in excess of $1 billion one person said, adding that such a deal would be difficult to pull off given the current crypto-market environment.
Discussions have centered on the sale of part or all of the company, though it is unclear whether any talks remain active.
A B2C2 spokesperson declined to comment. SBI did not respond to a request for comment by publication time.
Founded in 2015,B2C2 is an institutional cryptocurrency market maker and liquidity provider that enables banks, exchanges, brokers, hedge funds and asset managers to trade digital assets efficiently. The firm uses proprietary trading technology to provide deep liquidity and 24/7 execution across spot, derivatives, structured products and over-the-counter (OTC) markets.
Crypto markets have struggled for much of the year as weaker trading volumes, concerns over the economy and fading risk appetite weighed on digital assets. The tougher backdrop has hurt market makers, whose revenues depend largely on trading flows and providing liquidity. With spot trading volumes subdued, firms across the sector have faced pressure on profitability.
Mergers and acquisitions are expected to remain a defining theme in 2026 as digital asset firms consolidate to achieve scale, expand product offerings and meet growing institutional demand, according to industry analysts.
Exchanges, market makers, custodians and financial technology providers are looking to acquire complementary businesses to build integrated digital asset platforms, reflecting the maturation of the crypto ecosystem into a more institutional and regulated market.
SBI Financial Services, a subsidiary of SBI Holdings, acquired a 90% stake in B2C2 in December 2020, months after investing $30 million in the firm.
B2C2's financial results are not disclosed separately. They are reported as part of SBI's broader crypto-asset business segment. For the fiscal year ended March 31, that segment generated 89.6 billion yen ($550 million) in revenue, up 10.9% from a year earlier, while profit before tax was unchanged at 21.2 billion yen.
SBI Holdings said last month it had agreed to buy cryptocurrency exchange Bitbank for around $289 million.
Last year, B2C2 explored raising up to $200 million from external investors. The fundraising would have allowed SBI to reduce its stake while providing the London firm with additional growth capital.