Japanese Financial Services Firm Invests In Huobi Japan

One Japanese financial services firm is in the coming altcoin news for its decision to invest in the Japanese branch of the cryptocurrency exchange Huobi. The firm Tokai Tokyo Financial Holdings is in the focus now for investing around 500 million yen (nearly $4.6 million) in Huobi Japan.

A press release officially confirmed this on December 26 and showed that this investment is part of a broader collaboration with Huobi Japan. In that manner, Tokai will acquire shares in the exchange. The Japanese financial services firm did not immediately respond to requests for details regarding the share acquisition but is expected to do that soon.

As it stands, Tokai intends to use the partnership with Huobi to promote new businesses in the areas of crypto asset exchange, initial coin offerings, currency issuance and crypto management and storage services.

As reports from one financial news website note, the Japanese financial services firm reported a revenue of 57.57 billion Japanese yen ($252.5 million) over the past 12 months.  Today, we can see a report by the firm in the cryptonews showing that the new partnership is part of a wider effort to adopt new and emerging technologies like blockchain as part of its business development plan.

Meanwhile, the Japanese arm of the cryptocurrency exchange Huobi previously acquired a majority stake in local cryptocurrency exchange BitTrade in September 2018. The firm changed BitTrade’s name to Huobi Japan and continues to facilitate cryptocurrency trading.

Also, Huobi Japan is seemingly focusing its business efforts on the far east – it recently ceased the operations of its United States based trading platform. The exchange also explained that the local regulatory environment forced the firm to prohibit Americans from accessing its services.

Right now, cryptocurrency exchanges are moving towards partnerships in a bid to expand their scope of operations and diversify their revenue models. Not only the Japanese financial services firm investing in Huobi Japan is the perfect example of this…Recently, we could also see Binance announcing that it partnered with the peer-to-peer crypto trading platform Paxful to sell goods and services and accept more the 167 fiat currencies.

The partnership between Tokai Tokyo Financial Holdings and Huobi Japan Holdings will certainly be in the focus in Japan in the upcoming months.