On Friday, Japan-based cryptocurrency exchange bitFlyer announced the completion of the acquisition of 100% of the outstanding shares of FTX Japan, making FTX Japan a wholly owned subsidiary of FTX Japan. bitFlyer.
The acquisition, completed on July 26, 2024, comes after FTX Trading and related entities, including its Japanese subsidiary , filed for Chapter 11 bankruptcy protection in the United States. Sessions on November 11, 2022.
After the US Bankruptcy Court approved the sale order on July 16, bitFlyer successfully merged FTX Japan into its operations, with significant changes expected to take advantage of the acquisition.
As part of the transition, FTX Japan will change its name by August 26, 2024, with the new name expected to be “new custody company.”
The rebranding is a strategic move to align the acquired business with bitFlyer 's core focus of providing “enhanced” crypto custody services to institutional investors.
“The foundation of the basic policy of the cryptocurrency custody business is the growing need for institutional investors to participate in the Cryptoasset market and the need for security measures dedicated.”
By growing its centralized crypto custody business under the bitFlyer Group umbrella, the company aims to meet growing demand from institutional investors seeking compliant access into the digital asset ecosystem in this Asian country.
Friday's announcement revealed that the new custodian is exploring the possibility of offering services related to spot cryptocurrency ETFs in the future, subject to establishing the necessary legal and regulatory framework in Japan.
This is in line with recent regulatory developments in the US, where the US Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs in January and most recently the Ethereum spot ETF just launched trading on Monday.
“We believe that by providing crypto custody and Cryptoasset spot ETF related services through the new custodian, we will be able to provide unique value for bitFlyer Group.”
bitFlyer CEO Yuzo Kano stated in a recent social media post that Capital inflows from institutional investors have increased in recent months due to the regulated Bitcoin ETF market and he also believes that one day crypto-related ETFs will be listed in Japan.
“Through our custody business, we aim to become a public service that Vai as the industry's infrastructure.”
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Annie
According to Bitcoinist
