bitFlyer Holdings Inc, a cryptocurrency exchange in Japan, has announced it has completed the acquisition of 100% of FTX Japan’s outstanding shares, making it its wholly-owned subsidiary. This subsidiary will be rebranded under the bitFlyer name by August 26, 2024.
Expanding with Acquisition
This acquisition aligns with bitFlyer’s strategic goals on two main fronts. First, the company aims to enhance its crypto custody services with advanced security features designed for institutional investors.
Additionally, bitFlyer plans to offer services related to cryptocurrency spot exchange-traded funds (ETFs) in the future. However, this will depend on the establishment of appropriate legal frameworks in Japan.
Earlier, FTX Japan, part of over 100 entities in bankruptcy proceedings, reported having more assets than liabilities, with $134 million in segregated user assets, as reported by Finance Magnates. This raised hopes for recovering funds for Japanese customers.
Bitflyer was set to acquire all shares of FTX Japan, valued at several billion yen. Bitflyer, licensed by Japan's Financial Services Agency since 2017, ranked 22nd globally by trading volume, with $73.11 million in 24-hour trades, largely driven by BTC/JPY transactions.
Bitflyer to launch custodian #Crypto business after FTX Japan buyout — #Crypto.news: Bitflyer to launch custodian #Crypto business after FTX Japan buyout #Crypto.news https://t.co/iCT2uCQWj7
— Stock Market News (@Stock_Market_Pr) July 26, 2024
Institutional Custody and ETF Expansion
Upon rebranding and integrating FTX Japan, bitFlyer will concentrate on launching a crypto custody business. This service will primarily target institutional investors and will emphasize high-security measures to protect digital assets.
An official statement from the firm issued in that regard reads: “Our extensive expertise in blockchain technology and our proprietary security-focused wallet solution reinforce our commitment to securing institutional investments.”
In light of the recent approval by the US Securities andExchange Commission of 11 Bitcoin spot ETFs in January 2024, bitFlyer anticipates a similar regulatory push in Japan. The company is preparing to offer crypto spot ETF services once Japan’s legal and tax systems are adequately developed.
This article was written by Tareq Sikder at www.financemagnates.com.
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