SBI Holdings has entered into talks to acquire shares in Bitbank, aiming to make the crypto exchange operator a consolidated subsidiary of the major Japanese financial services conglomerate.

SBI Chairman and President Yoshitaka Kitao said in a statement on Friday that the company has submitted a letter of intent regarding the acquisition of shares and has begun discussions with Bitbank regarding a capital and business alliance.

Kitao said the firm plans to acquire Bitbank shares after conducting due diligence and following the necessary internal procedures, with separate discussions regarding the specific timing and structure to follow.

Bitbank operates one of the major domestic crypto exchanges in Japan and says it has not experienced a hacking incident since its founding in May 2014, positioning security as a key part of its offering.

As crypto assets move toward inclusion under the Financial Instruments and Exchange Act, SBI said bringing Bitbank into the group would strengthen its position in Japan's crypto market.

The talks come as the group continues to consolidate activity into its in-house crypto exchange arm, SBI VC Trade. Last month, it merged crypto exchange Bitpoint Japan into the unit as part of efforts to streamline operations and improve profitability.

Earlier this week, Bitbank rolled out a crypto-linked credit card that enables users to pay their bills in bitcoin and other assets, based on their exchange holdings — a first for the domestic market. The card also offers a 0.5% cashback in crypto on monthly spending.