bitFlyer Completes Acquisition of FTX Japan, Expands Crypto Custody Services

• bitFlyer announced the successful acquisition of FTX Japan, marking a significant milestone in the crypto industry.
• This strategic move will see bitFlyer take full ownership of FTX Japan’s shares and rebranding the entity to enhance its crypto custody services.
• bitFlyer plans to leverage its advanced wallet technology to meet the growing demand for secure crypto asset management among institutional investors.

This article unveils bitFlyer’s acquisition of FTX Japan and its strategic plans to expand its crypto custody services, targeting institutional investors with advanced security solutions.

bitFlyer Finalizes Acquisition of FTX Japan

On July 26, bitFlyer completed its acquisition of FTX Japan, acquiring 100% ownership of the company’s outstanding shares. This acquisition is a pivotal step for bitFlyer as it aims to bolster its position in the crypto market.

Rebranding and Expansion of Crypto Custody Services

Following the acquisition, bitFlyer announced plans to rebrand FTX Japan as “Custody New Company” by August 26, 2024. This rebranding effort is part of bitFlyer’s broader strategy to expand its crypto custody business. By utilizing its existing operational resources and state-of-the-art wallet technology, bitFlyer aims to meet the increasing demand for secure crypto asset management solutions among institutional investors.

bitFlyer’s Strategy for Sustainable Growth

bitFlyer has emphasized that acquiring FTX Japan and rebranding it as Custody New Company is integral to its strategy for sustainable growth. The company plans to leverage synergies within the bitFlyer Group to develop new services that will benefit not only FTX Japan and its customers but all stakeholders within the group.

Meeting the Needs of Institutional Investors

With an increasing number of institutional investors entering the crypto market, the need for professional security measures is more critical than ever. bitFlyer is poised to address this demand with its advanced security measures, which are built on its expertise in blockchain technology. The secure wallet developed by bitFlyer will be central to its new crypto custody offerings, ensuring the highest level of protection for digital assets.

Regulatory and Financial Considerations

While the financial terms of the acquisition have not been disclosed, bitFlyer has indicated its interest in offering services related to cryptocurrency derivatives ETFs. These offerings are contingent on further legislative developments in Japan, particularly concerning tax regulations. By exploring these services, bitFlyer aims to cater to the evolving needs of financial institutions and trust banks.

A Look Back at FTX Japan’s Journey

FTX Japan came into existence in June 2022 through the acquisition of Liquid Group and its subsidiaries, including Quoine Corporation, one of Japan’s pioneering crypto exchanges. Despite its promising beginning, FTX Japan faced turbulent times following the collapse of its parent company, FTX, just five months later. The fallout led to allegations of embezzlement and misappropriation of customer funds, resulting in bankruptcy protection under Chapter 11 and the eventual downfall of FTX’s founder, Sam Bankman-Fried.

Conclusion

The acquisition of FTX Japan by bitFlyer marks a new chapter in the crypto industry, with potential benefits for institutional investors seeking secure and advanced crypto asset management services. By leveraging its technological expertise and rebranding efforts, bitFlyer is well-positioned to drive sustainable growth and innovation in the crypto custody market. Investors and stakeholders alike will be keenly watching how this new development unfolds, with high expectations for bitFlyer’s future offerings.