FTX Japan has been acquired by bitFlyer, a Japanese crypto exchange.
The firm will be rebranded to New Custody Company until a new name is decided.
FTX Japan will now focus on providing institutional-grade crypto custody services.
bitFlyer, a Japanese crypto exchange, has acquired the Japanese branch of the now-bankrupt exchange FTX. FTX Japan will be rebranded after the purchase, initially operating under the temporary name New Custody Company until a new name is chosen.
Operating a crypto exchange will become less of a primary focus for New Custody Company; instead, the company will prioritize institutional-grade crypto custody services. According to bitFlyer, the newly acquired platform will also offer services related to crypto exchange-traded funds (ETFs), a market not yet established in Japan. bitFlyer anticipates that spot BTC ETFs will soon be permitted in Japan, stating:
“Although the situation is not necessarily the same in the U.S. and Japan, this trend is expected to increase the need for institutional investors to enter the crypto asset market in Japan, and crypto asset custody services are expected to become more important.”
Based on bitFlyer’s observations, crypto asset spot ETFs could emerge in Japan even before a formal framework incorporating tax rules is developed. Notably, New Custody Company intends to provide services tailored to financial institutions, including trust banks. Subject to customer permission, New Custody Company will also allow FTX Japan client accounts to be transferred to bitFlyer.
bitFlyer believes that its expertise in blockchain and crypto will enable New Custody Company’s clients to benefit from secure crypto asset trading. The company also aims to expand its custody business to meet the growing demand from institutional investors seeking robust security solutions for their entry into the crypto asset market.
According to local news site Nikkei, bitFlyer spent billions of yen, or tens of millions of dollars, to acquire FTX Japan, formerly known as Liquid, which was purchased by Sam Bankman-Fried’s FTX exchange in early 2022.The exchange was renamed FTX Japan just months before the FTX empire collapsed in November 2022. Following the collapse, FTX Japan asserted that its clients’ assets were not included in the bankruptcy proceedings and subsequently began the process of withdrawing and reimbursing customer funds in February 2023.
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