Tokai Tokyo Invests ¥500mln in Japanese Subsidiary of Cryptocurrency Exchange Huobi
Tokai Tokyo Financial Holdings, a financial service firm headquartered in Japan, is investing ¥500 million (roughly $4.60 million) in cryptocurrency exchange Huobi’s Japanese branch.
As per a media release on December 26, the stake purchase is among a wider partnership with Huobi Japan, underwhich Tokai will purchase shares in the exchange.
Tokai aims to utilize the collaboration with Huobi to establish new ventures related to cryptocurrency exchange, cryptocurrency administration and vault services, and initial coin offerings.
As per financial news portal Financial Times, Tokai Tokyo Financial Holdings posted revenues of ¥57.57 billion ($252.50 million) over the past year.
The firm opined that its latest partnership is one of the steps in its business development strategy. Furthermore, Tokai hopes to achieve its objective through the adoption of budding and path breaking technologies such as blockchain.
Huobi Japan Holdings, Japanese subsidiary of Huobi, has taken a substantial stake in domestic cryptocurrency exchange BitTrade in September 2018. Back in February 2019, the enterprise renamed BitTrade to Huobi Japan and still facilitates cryptocurrency trading.
Huobi seems to be concentrating on Far East as it suspended operations in the US in the recent past. The cryptocurrency exchange clarified that the prevailing US regulations did not allow it to accept citizens of that country as customers.
To sustain growth, manage rising competition and diversify revenue models, cryptocurrency exchanges are partnering with other crypto related service providers. Earlier in December, top cryptocurrency exchange Binance entered into a partnership with P2P cryptocurrency trading platform Paxful to sell products and services.
The partnership also paves way for acceptance of 167 fiat currencies.