Japanese financial service company Tokai Tokyo Financial Holding Inc. has made an announcement saying that it has entered into the capital and business alliance agreement with Huobi Japan Inc.
In a press release published on December 26, Tokai Tokyo said that it would invest 500 million Yen, valued at approximately $4.6 million, in Huobi Japan Inc. in January 2020 which will see Tokai Tokyo acquiring share of Huobi Japan.
This invest will be part of a capital and business alliance between two companies. Through this alliance, Tokai Tokyo is seeing to strengthen its management foundation to evolve into an advanced integrated financial group. According to the company, its main management issues are to expand products and services that meet customer needs by adopting new Fintech and digital technologies.
The company, in press release, said that new crypto laws are expected to be in force next spring and therefore, they “believe that the business dealing with crypto assets and blockchain will accelerate further.”
Tokai Tokyo further said:
“Using the capital and business alliance with Huobi Japan, a Japanese subsidiary of Huobi Group, which is a global blockchain business developer, we will promote new businesses in the areas of crypto asset exchange, new financing schemes utilizing crypto assets such as Initial Exchange Offering (IEO), local currency issuance, and storage and management service associated with crypto assets. We consider expanding this business to partner regional banks and other regional banks in the future.”
Tokai Tokyo Financial Holding Inc. is one of the country’s oldest securities trading platforms, and opened for business in 1908. The company is engaged in the purchase and sale of securities, the brokerage of securities, the underwriting, sale, public offering and private offering of securities, as well as other financial product transaction businesses and financial product-related businesses. The company has 21 subsidiaries, eight associated companies, has some 159 offices nationwide.
In November, the company also invested $5 million in a tokenized security platform iSTOX which is going to start its operation in early 2020.
Huobi Japan Inc. is subsidiary of Huobi Global headquartered in Beijing, China. Huobi group acquired a majority stake in local cryptocurrency exchange BitTrade in September 2018. Huobi group then changed BitTrade’s name to Huobi Japan in February 2019 and continues to facilitate cryptocurrency trading. The group provides crypto asset financial services including exchange, trade, wallet, and storage.