FTX Company to acquire Japan based company Liquid group
FTX Trading Ltd. will acquire Liquid Group and its subsidiaries in Singapore, including Quoine Corporation and Quoine Pte. Assuming customary closing conditions are met, the acquisition will close in March 2022.
The liquid was valued at more than $1 billion in its first round of funding in 2019. The deal will close next month, the amount for the acquisition has not been disclosed, nor have the economic terms of the deal.
FTX will be migrated to Quoine's platform as soon as the acquisition is completed. Both FTX and Liquid expect to work together to serve both retail and institutional customers in Japan and worldwide. The company also signed an agreement to deliver services in Japan in accordance with local law.
LiquidGroup and FTX have a history together. FTX transferred $120 million to Liquid Group to stabilize the organization after hackers drained more than $90 million worth of assets.
The Japanese government provided Quoine with a Type 1 Financial Instruments Business registration in October 2021, allowing it to offer derivatives trading to its customers. Quoine was one of the first crypto exchanges to be approved by the Financial Services Agency (FSA) in 2017.
The cryptocurrency platform, FTX has seen impressive growth in 2022, announced a $2 billion venture fund last month to invest in new and promising projects related to the digital asset market.
The news comes a day after FTX global closed a $400 million financing round, which increased its own valuation to $32 billion.
FTX US, the American branch of the platform, raised $400 million in a funding round led by Temasek Holdings and SoftBank Group at the end of January. The deal increased FTX's valuation to $8 billion.
FTX and FTX US have both acquired companies recently. FTX acquired Blockfolio, a crypto portfolio management app, for $150 million, while FTX US acquired LedgerX, a crypto derivatives exchange.
CBW - External Analyst