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bitFlyer Swallows FTX Japan Whole: Plans to Enhance Crypto Custody and ETF | Finance Magnates

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.

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.

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 and
Exchange 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.

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.

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.

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 and
Exchange 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 originally published by a www.financemagnates.com . Read the Original article here. .

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