Japanese crypto exchange BitFlyer has acquired FTX Japan, making it a wholly-owned subsidiary to target crypto custody and spot ETFs. Starting August 26th, FTX Japan will be rebranded under BitFlyer Holdings.
The primary focus will reportedly be on building a new crypto custody business, which aims to offer secure storage solutions for institutional investors.
Crypto custody and spot ETFs
BitFlyer is also eyeing the future of cryptocurrency in Japan, particularly the potential for spot ETFs. The company said they’re waiting for Japan’s legal system to catch up before rolling out ETF-related services. A representative said:
“We still need to wait for the tax system and other legal systems to be established.”
The rising interest from institutional investors in the crypto market is what inspires the push into custody services. BitFlyer says it sees a real opportunity here and they believe Japan will soon follow suit, creating a demand for similar financial products.
FTX Japan and its related entities had filed for Chapter 11 bankruptcy in the U.S., and a Delaware court approved the sale to BitFlyer Holdings on July 16, 2024.
For FTX Japan’s existing customers, there are some changes on the horizon. Accounts will be transferred to BitFlyer, Inc., provided the customers agree. The new company will also kick off a cryptocurrency deposit business, again targeting institutional clients.
BitFlyer, Inc. will maintain its licenses for cryptocurrency exchange and Type 1 financial instruments business, ensuring they can operate across a broad spectrum of financial activities.
While they’re focusing heavily on custody and ETFs, the company says the core business remains crypto sales and exchange.
