Diversification
Diversification of counterparties and execution venues is part of SPD Japan's basic policy.
DIGITAL
ASSET
LENDING
Available Corporate clients
Crypto-Asset Lending
Digital Asset
Lending
SPD Japan provides a lending service (loan for consumption of crypto-assets) under which it borrows crypto-assets from corporate clients, pays the lending fee set out in each individual lending agreement, and, in accordance with that agreement, will return crypto-assets of the same kind and quantity. Lending fees, lending periods, and other conditions are set out in each individual lending agreement. Details are explained individually after an NDA has been signed.
No applications are accepted, and no transfers of crypto-assets are received, on this website. SPD Japan guides each client individually through the lending procedures, which involve signing an NDA, identity verification, and concluding a lending agreement. SPD Japan is not registered as a financial instruments business operator or as a crypto-asset exchange service provider, and this service is based on a loan-for-consumption agreement for crypto-assets.
Company Risk Controls
SPD Japan's Treasury and Risk Management
SPD Japan manages the assets it holds, including borrowed crypto-assets, for its own account. Its basic policy consists of limiting dependence on price direction, diversification of counterparties and execution venues, the setting of limits and stop criteria, wallet and private-key management, and daily reconciliation. These are SPD Japan's own internal policies and do not guarantee the return of crypto-assets or the payment of lending fees to clients.
Nothing stated here represents past results or future outcomes.
Limits and Stop Criteria
Setting limits and stop criteria is part of SPD Japan's basic policy.
Reconciliation
Wallet and private-key management and daily reconciliation are part of SPD Japan's basic policy.
OPERATING PROCESS
SPD Japan's Control Process
The following are SPD Japan's internal policies. SPD Japan's policy is to set out the personnel, systems, outsourcing contractors, and frequency of implementation in each individual lending agreement. These do not guarantee the return of crypto-assets or the payment of lending fees to clients.
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01
Research and Verification
SPD Japan's policy is to check market data, transaction costs, and liquidity.
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02
Limits and Stop Criteria
SPD Japan's policy is to set adoption criteria, trading limits, stop conditions, and exception procedures.
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03
Execution
SPD Japan's policy is to execute transactions involving crypto-assets it holds within the approved scope.
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04
Reconciliation
SPD Japan's policy is to reconcile wallets, counterparties, and ledgers.
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05
Reporting
SPD Japan's policy is to report lending balances, accrued lending fees, the return schedule, an overview of SPD Japan's financial condition, and material events.
RISK MANAGEMENT
Risk Management Policy
SPD Japan sets control standards for eligible crypto-assets, counterparties, execution venues, wallets, liquidity, lending balances, and systems.
Market Risk
Crypto-asset prices fluctuate significantly. The quantity to be returned is the quantity set out in the agreement, but its value in yen may fall significantly below its value at the time of lending. If lending fees are paid in crypto-assets, their value will fluctuate in the same way.
Counterparty Risk
A deterioration in the creditworthiness, or the failure, of SPD Japan's counterparties, exchanges, custodians, or other parties may cause SPD Japan to incur losses. As a result, SPD Japan's financial condition may deteriorate, which may affect the return of crypto-assets or the payment of lending fees.
Liquidity Risk
Due to reduced market liquidity, suspension of withdrawals, suspension of trading, or other events, crypto-assets may not be returned, or lending may not be carried out, as scheduled.
Risks Relating to SPD Japan's Custody of Crypto-Assets
If an incident such as unauthorized access (hacking), loss of private keys, or a mistaken transfer occurs with respect to crypto-assets held by SPD Japan, SPD Japan may incur losses, which may affect the return of crypto-assets or the payment of lending fees. The treatment of any new crypto-assets or other assets arising from hard forks, airdrops, or similar events during the lending period is set out in each individual lending agreement.
System Risk
Failures of APIs, networks, price data, order management, or other systems may cause SPD Japan to suspend or change transactions.
Legal and Tax Risk
Changes in laws, regulations, tax rules, or accounting treatment may result in changes to lending terms, suspension of new lending, or termination of the service. Lending fees and other economic benefits arising from this service may be subject to tax for clients. Clients should confirm the tax treatment themselves with a licensed tax accountant or other professional.
Risk management does not guarantee that losses will be prevented. Sudden market movements, drying up of liquidity, counterparty failures, system failures, or other events may cause losses greater than expected.
SPD Japan's credit risk: Due to a deterioration in SPD Japan's financial condition, its insolvency, or similar events, the lent crypto-assets may not be returned and lending fees may not be paid. Due to the nature of a loan-for-consumption agreement, ownership of the borrowed crypto-assets transfers to SPD Japan, and they are not held separately from SPD Japan's own assets. If SPD Japan becomes insolvent, clients will be general (unsecured) creditors holding a claim for return.
During the lending period, clients may not sell, transfer, or otherwise dispose of the lent crypto-assets. Early return is not possible unless provided for in the individual lending agreement. Return is made through the procedures and within the period set out in the agreement, and may be delayed by sudden market movements, system failures, or other events.
GOVERNANCE
Operations and Control Policy
SPD Japan's policy is to separate the initiation and approval of transactions, the review of lending and risk, and the preparation and final review of records. The names and backgrounds of personnel, outsourcing contractors, and contract details are disclosed after an NDA has been signed. These are SPD Japan's own internal policies and do not guarantee the return of crypto-assets or the payment of lending fees to clients.
- Launch, change, or suspension of the lending service
- Management approval
- Legal structure, advertising, and contracts
- Legal and Compliance
- Execution and balances
- Lending administration
- Limits, liquidity, and material events
- Risk management
- Wallets, incoming and outgoing transfers, and reconciliation
- Asset custody
- Financial and client reporting
- Accounting and reporting
REPORTING
Reporting Policy
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01
Weekly
Lending balances, accrued lending fees, and material events
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02
Monthly
Return schedule and an overview of SPD Japan's financial condition
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03
As needed
Material events, suspension of trading, suspension of asset transfers, and any impact on the return of crypto-assets
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04
Annually
Financial and operating condition
SPD Japan's policy is to set out the reporting frequency, the items reported, and the scope of any third-party verification in each individual lending agreement. Reports cover lending balances, accrued lending fees, the return schedule, an overview of SPD Japan's financial condition, and material events.
ONBOARDING
Onboarding Process
- 01Inquiry
- 02Signing of an NDA
- 03Disclosure of due diligence materials
- 04Identity verification, customer attribute checks (SPD Japan's internal criteria), and AML/CFT
- 05Review of product terms and the agreement
- 06Internal approval by both parties
- 07After the lending agreement is concluded: wallet registration and a small test transfer
- 08Start of lending after the start conditions are met
The required procedures and the time needed vary depending on the client's attributes, the legal structure, due diligence, the agreement, and the status of approvals by both parties.
IMPORTANT INFORMATION
Important Information
This page is intended to provide information about the loan for consumption of crypto-assets. No applications are accepted, and no transfers of crypto-assets are received, on this website. SPD Japan guides each client individually through the lending procedures, which involve signing an NDA, identity verification, and concluding a lending agreement.
SPD Japan is not registered as a financial instruments business operator (including investment management business, investment advisory and agency business, and Type II financial instruments business) or as a crypto-asset exchange service provider. This service is based on a loan-for-consumption agreement for crypto-assets, and does not involve the purchase, sale, exchange, or custody of crypto-assets, investment management, investment advice, or the solicitation of interests in collective investment schemes.
Due to the nature of a loan-for-consumption agreement, ownership of the borrowed crypto-assets transfers to SPD Japan, and they are not held separately from SPD Japan's own assets. If SPD Japan becomes insolvent, clients will be general (unsecured) creditors holding a claim for return, and all or part of their crypto-assets may not be returned. This service is not covered by the segregation of user assets or the performance-guarantee crypto-assets system that apply to crypto-asset exchange service providers, by the deposit insurance system, or by the Investor Protection Fund.
SPD Japan is obligated to return crypto-assets of the same kind and quantity in accordance with the lending agreement. However, the return of crypto-assets or the payment of lending fees may be delayed, or may not be made in whole or in part, due to a deterioration in SPD Japan's financial condition, its insolvency, or losses on crypto-assets held by SPD Japan (including losses caused by price fluctuations, counterparty failures, drying up of liquidity, unauthorized access, system failures, or other causes).
The product name, contracting entity, legal structure, eligible corporate clients, eligible assets, lending fees, lending period, conditions for return, and other conditions are set out in each individual lending agreement. These conditions may be changed or discontinued depending on the results of SPD Japan's internal approval.
CONTACT
Request Materials / Consultation
SPD Japan accepts consultations regarding an overview of crypto-asset lending, NDAs, and due diligence materials.