On Friday, Japan-based cryptocurrency alternate BitFlyer introduced the completion of its acquisition of 100% of the excellent shares of FTX Japan, making FTX Japan a wholly-owned subsidiary.
The acquisition, finalized on July 26, 2024, comes after FTX Buying and selling and associated entities, together with the Japan subsidiary, filed for Chapter 11 chapter safety in the USA on November 11, 2022.
Plans To Rework FTX Japan Into A Crypto Custody Large
As introduced, following approval of the sale order by the US Chapter Courtroom on July 16, BitFlyer has efficiently built-in FTX Japan into its operations, with vital adjustments on the horizon to capitalize on the acquisition.
As a part of the transition, FTX Japan will change its identify by August 26, 2024, with the tentative new identify being the “new custody firm.”
The rebranding is a strategic transfer, the corporate stated, to align the acquired enterprise with BitFlyer’s core deal with offering “superior” crypto custody companies to institutional buyers. The alternate additional said:
The background to the essential coverage of the crypto custody enterprise is the rising want for institutional buyers to enter the crypto asset market and the necessity for specialised safety measures.
By growing a centered crypto custody enterprise underneath the BitFlyer Group umbrella, the corporate goals to satisfy the rising demand from institutional buyers in search of compliant entry to the digital asset ecosystem within the Asian nation.
BitFlyer Bets On Crypto Spot ETFs
Friday’s announcement revealed that the brand new custodian is exploring the opportunity of providing companies associated to crypto asset spot exchange-traded funds (ETFs) sooner or later, topic to establishing the required authorized and regulatory framework in Japan.
That is consistent with current regulatory developments in the USA, the place the US Securities and Change Fee (SEC) authorised the itemizing of a number of spot Bitcoin ETFs in January, and most lately, the brand new spot Ethereum ETFs authorised on Monday. BitFlyer additionally stated on the matter:
We consider that by offering crypto custody companies and crypto asset spot ETF associated companies by way of the brand new custody firm, we can present worth that’s distinctive to the bitFlyer Group.
BitFlyer’s CEO, Yuzo Kano, said in a current social media submit that the influx of funds from institutional buyers has elevated in current months as a result of regulated Bitcoin ETF market, and he additionally believes that crypto-related ETFs will at some point be listed in Japan.
“By way of our custody enterprise, we intention to change into a public service that serves as an business infrastructure,” Kano said.
On the time of writing, FTX’s native token, FTT, is buying and selling at $1.41, up over 6% within the wake of BitFlyer’s new acquisition on Friday. The token has additionally seen an 18% enhance in buying and selling quantity since Thursday, reaching $13 million, in line with CoinGecko information.
Featured picture from DALL-E, chart from TradingView.com