Singapore-based crypto exchange Huobi’s Japan division has reportedly received nearly 500 million yen (appr. $4.6 million) in funding from a major Tokyo-listed firm focused on several areas including leasing, real estate, insurance brokerage and mergers and acquisitions (M&A).
As noted in Huobi’s press release, the company’s investor, Financial Products Group (FPG), acquired 499,968,000 yen worth of shares from the Japan-based subsidiary of Huobi Asset Investments on October 25.
FPG’s management noted that it purchased shares in the company because of its potential, as Huobi Japan is planning to create various solutions for digital currencies and related payments systems.
FPG and Huobi might also work cooperatively on new projects involving the tokenization of financial securities. FPG’s management has a strong background in traditional finance and real estate.
The companies have not yet disclosed exactly how the investment will be allocated, however, they said the funds would be used to finance Huobi Japan’s expansion in the East Asian country.
At present, it’s not clear what percentage of ownership FPG will have in Huobi, however, the disclosure confirmed that the exchange’s paid-up capital was $5.7 million. Meanwhile, the firm’s website mentions that total capital, including reserves, stands at $11 million.
Established in Beijing in 2013, Huobi Global is ranked as the world’s 15th largest crypto exchange in terms of trading volume, according to data from CoinMarketCap. The exchange also has its own Huobi Token, which is presently ranked 17th in terms of market capitalization.
Huobi’s Japan division was launched in 2016. Last year, the exchange operator acquired BitTrade, a fully-compliant crypto trading platform in Japan. Bittrade’s company name has been changed to Huobi Japan. Trading on the platform started in January of this year in six major digital assets: Bitcoin (BTC), XRP, Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and MONA.
In April 2019, Japan’s financial regulator, the Financial Services Agency (FSA), raided Huobi Japan’s offices. The FSA had been checking to determine whether the exchange was adhering to relevant regulatory guidelines.
