Cryptocurrencies just got a major nod of approval from the traditional banking sector as Huobi Japan secured $4.6 million in funding from the brokerage firm Tokai Tokyo Financial Holdings. The funding is set to go towards the expansion of Huobi Japan’s cryptocurrency aspirations.
According to company documentation, the new funding came from the issuance of stocks to the Tokai Tokyo Financial Holdings (TTFH). Interestingly, the actual transfer date of the stocks is set for Q1 2020. Consequently, The news showcases further integration between blockchain-based and traditional financial service providers.
Huobi Japan – Recognition
Discussing the maneuver, Huobi Japan CEO, Haiteng Chen called the important milestone a nod of “mainstream recognition” towards the crypto space. Chen explained that the goal of the project is to “provide safe, secure, and customer-first financial services” to those seeking to enter the crypto sector. He stated that through the business alliance with Tokai Tokyo Financial Holdings, the platform will gain significant positioning.
Chen’s comment falls in line with earlier interviews held with Leon Li, Huobi Group Founder, and CEO. Here, Li described the firm’s desire to focus on the Japanese market. He explained that Huobi’s half-decade of experience in the market gives it a huge advantage in terms of understanding what investors require.
Huobi Japan (Reg. No. 00007) is Huobi’s Tokyo-based subsidiary. The company started with the goal to develop a fully regulated and compliant place to trade digital assets. Today, the firm operates a centralized cryptocurrency exchange located in Japan. Importantly, the platform was among the first batch of 17 exchanges to receive registration under the FSA.
Huobi is no stranger to headlines as of late. Earlier in the year, the company saw considerable coverage over a failed merger with SBI Virtual Currency. From there, Huobi did a merger with the crypto exchange BitTrade that placed the platform back into the spotlight. Most recently, the company raised $4.6 million in funding from a financial instruments business operator named the Financial Products Group.
Tokai Tokyo Financial Holdings
Tokai Tokyo Financial Holdings is the oldest securities trading platform in the country. The firm entered service back in 1908. Today, the company provides financial services to private and enterprise clients. These services include the dealing, distribution, brokerage, underwriting, and distribution of securities.
Currently, Tokai Tokyo Financial Holdings is a major financial institution with considerable sway. The company boasts 159 offices. Notably, the firm actively manages over $39 billion in client assets with revenues of around $1.4 billion.
Japan – Crypto Center
Japanese officials continue to court more blockchain startup dollars through various measures. Today, the country is known as one of the best places in the world to start a crypto-based business. The amicable taxes and transparent regulatory framework make the island ideal for new investors seeking a pro-crypto location to start business operations.
Crypto Gets the Gold Star
To see a firm like the Tokai Tokyo Financial Holdings invest in a crypto exchange is telling. You can expect to see a landslide of traditional investment firms attempting to get in the industry moving forward. For now, Huobi Japan continues to lead the pack.