The Japanese subsidiary of crypto exchange Huobi is set to rise JPY 500 million (around $4.6 million) in a fresh funding round.
Per Thursday’s announcement, the funds will be raised by issuing new stocks in a private placement to the Tokai Tokyo Financial Holdings (TTFH). The new stocks are scheduled for issuance in the first quarter of next year.
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Commenting on the new funding, Haiteng Chen, CEO of Huobi Japan, said: “As Huobi Japan continues to provide safe, secure, and customer-first financial services, we will benefit from the capital and business alliance with Tokai Tokyo Financial Holdings. Huobi Japan being leader in security-focused blockchain technology was of big help in helping us the funding.”
Expanding domestic presence
Earlier in October, Huobi Japan raised another $4.6 million from Financial Products Group (FPG) using the same technique of fresh equity allotment via a third party.
Similar to the previous proceeds, the exchange is planning to use the upcoming funding in its ongoing business expansion.
TTFH is a comprehensive securities firm that provides financial services such as dealing, distribution, brokerage, underwriting, and distribution of securities and investment trust.
“Tokai Tokyo Financial Holdings chose to collaborate with Huobi Japan indicates greater mainstream recognition of our blockchain technology by traditional brokerage services. TTFH is a comprehensive securities firm, which will find many areas to benefit in from partnering with Huobi Japan,” Chen added.
While Huobi is expanding in Japan, it has closed its operations in the United States this month. The hasty decision came after a presence of more than a year and a half in the country.
However, the exchange is focusing on the untapped Middle East and North Africa (MENA) region and launched its cloud-based services there to provide white-label solutions to the local exchanges.