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BitFlyer acquires FTX Japan to expand crypto custody services.
The Japanese company bitFlyer has finished buying FTX Japan, making it a fully owned partner. This is very important for the bitcoin business. The parent company of the self-named cryptocurrency exchange, which is based in Tokyo, said in a press release on Friday that it had bought the cryptocurrency. It talked about how it planned to merge the new business with its own and change its name.
It is important to remember that bitFlyer has grown its business a lot by buying all of FTX Japan’s shares. However, the amount of money used in the purchase has not been made public. This shows that bitFlyer wants to strengthen its position in the cryptocurrency market, especially when it comes to crypto custody services.
Before the sale, FTX Japan Holdings owned the whole company. Since November 2022, when its parent company, FTX, went out of business, the Japanese branch of FTX has been in Chapter 11 bankruptcy. The exchange stopped running after it filed for bankruptcy, but FTX Japan continued to handle user assets during this time.
Rebranding and strategic expansion amid FTX’s turbulent history
The news release says that bitFlyer will change the name of FTX Japan to “Custody New Company” by August 26. This change in name is part of bitFlyer’s plan to use the company it bought to grow its crypto security business. The new organization will be able to use bitFlyer’s operational tools and cutting-edge wallet technology.
The custodian, which hasn’t been named yet, will also look for ways to offer services linked to physical crypto exchange-traded funds (ETFs). However, this growth depends on Japan having a good set of laws and rules, including tax rules.
“By acquiring all shares and management rights of FTX Japan, we aim to achieve sustainable growth, leveraging synergies within the bitFlyer Group to develop new services, benefiting not only FTX Japan and its customers but all stakeholders of the bitFlyer Group.”
BitFlyer
FTX closed down at the end of 2022. It was a major player in the market for exchanging cryptocurrencies around the world. It went down because people said that billions of dollars in customer funds were stolen or misused. These things were said about the people who own FTX and the hedge fund, Alameda Research, that is linked to them. After that, Sam Bankman-Fried, the founder of FTX, got 25 years in jail and had to pay back $11 billion.
The fall of FTX had a big impact on the cryptocurrency market as a whole, which led to more inspection and pressure from government officials. Even though things were crazy, FTX Japan made it through the bankruptcy process by making sure that customer assets were handled correctly.
bitFlyer ’s strategic custody expansion
BitFlyer’s purchase of FTX Japan is a smart business move that shows how important crypto security services are becoming. As rules change and business interest in cryptocurrencies grows, it is more important than ever to have safe and trustworthy ways to store cryptocurrency.
The addition of FTX Japan to bitFlyer’s operations should make it better at offering a wide range of cryptographic security services. The new name for Custody New Company is likely to be a key part of bitFlyer’s overall plan to serve big clients and large investors.
In the same way, bitFlyer is looking to the future by looking into services that are connected to real crypto ETFs. People have thought of exchange-traded funds (ETFs) as a way to link the coin market to regular money. They make it easy and safe for people to put money into digital assets. The fact that bitFlyer is interested in this shows that it is ready to adapt to new opportunities and market trends.
The fact that bitFlyer bought FTX Japan is a big step toward its growth plan. The company has totally integrated FTX Japan and changed its name to Custody New Company. This means that bitFlyer is ready to improve its crypto custody services and find new ways to make money in the fast-changing cryptocurrency market. bitFlyer is dedicated to using its tools and technology to meet the rising need for safe and trustworthy crypto services. The company will be very important in the future of its field because of this move.
