Huobi Japan has gotten around 500 million yen ($4.6 million) in investment from a Tokyo-listed firm associated with real estate, leasing, insurance brokerage, and mergers and acquisitions.
As indicated by press releases from the firm and the investor, Financial Products Group (FPG) obtained 499,968,000 yen worth of shares from the Japanese subsidiary of Singapore-incorporated Huobi Asset Investments on October 25.
FPG stated it bought into the company on account of its possibilities, as Huobi Japan will create arrangements identified with digital currencies and payments, and the two may plan to work together on undertakings concerning tokenization of the securities market, given FPG’s expertise in real estate and finance.
The precise utilization of funds was not disclosed, although the companies stated the new capital would be distributed in financing Huobi Japan’s expansion in the nation.
It isn’t clear from the statement what level of ownership the Japanese investment firm will get, though the disclosure said that Huobi Japan’s paid-up capital was $5.7 million, while the firm’s site puts total capital, including reserves, at $11 million as of February of this year.
FPG has not yet replied to the request for clarification.
Huobi was established in 2013 in Beijing. Its exchange, Huobi Global, is positioned as the fifteenth biggest exchange globally by reported volume, as per CoinMarketCap information. The organization additionally has the Huobi Token, which is positioned 17th by market capitalization.
Huobi Japan was established in 2016. Last year, the organization procured BitTrade, a completely authorized crypto exchange in Japan. Bittrade’s name was changed to Huobi Japan, and trading started in January this year of six cryptocurrencies, namely XRP, BTC, ETH, BCH, LTC, and MONA.
Reuters revealed in April that Huobi Japan was visited by the Financial Services Agency. The watchdog was verifying whether adequate compliance measures were set up following the change in management, as indicated by the story.