On Friday, Japan-based cryptocurrency change 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 america on November 11, 2022.
Plans To Remodel 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 title by August 26, 2024, with the tentative new title being the “new custody firm.”
The rebranding is a strategic transfer, the corporate stated, to align the acquired enterprise with BitFlyer’s core concentrate on offering “superior” crypto custody companies to institutional buyers. The change additional acknowledged:
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 creating a targeted crypto custody enterprise underneath the BitFlyer Group umbrella, the corporate goals to fulfill 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 potential for providing companies associated to crypto asset spot exchange-traded funds (ETFs) sooner or later, topic to establishing the mandatory authorized and regulatory framework in Japan.
That is in keeping with latest regulatory developments in america, the place the US Securities and Change Fee (SEC) accepted the itemizing of a number of spot Bitcoin ETFs in January, and most just lately, the brand new spot Ethereum ETFs accepted on Monday. BitFlyer additionally stated on the matter:
We consider that by offering crypto custody companies and crypto asset spot ETF associated companies by the brand new custody firm, we will present worth that’s distinctive to the bitFlyer Group.
BitFlyer’s CEO, Yuzo Kano, acknowledged in a latest social media submit that the influx of funds from institutional buyers has elevated in latest months because of the regulated Bitcoin ETF market, and he additionally believes that crypto-related ETFs will someday be listed in Japan.
“By our custody enterprise, we goal to change into a public service that serves as an trade infrastructure,” Kano acknowledged.
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% improve in buying and selling quantity since Thursday, reaching $13 million, in response to CoinGecko knowledge.
Featured picture from DALL-E, chart from TradingView.com