FTX to buy fintech Liquid in push to reach Japanese traders

[NEW YORK] FTX Trading is set to acquire Singapore-based fintech Liquid Group in a push to increase its presence in Japan.

The acquisition will allow FTX to enter the Japanese market with a regulatory stamp-of-approval because a key subsidiary of Liquid, Quoine Corp, was among the first cryptocurrency exchanges to register with Japan's Financial Services Agency in 2017. Quoine was approved to offer derivatives trading, an integral service for FTX.

The deal is expected to close in March, according to a blog post by Liquid. A FTX spokesperson declined to disclose the financial terms of the transaction. Liquid ranked 22nd in cryptocurrency trading with a volume of US$72 million over the last 24 hours, according to CoinMarketCap. FTX, one of the world's largest crypto exchanges, sits in the third-highest slot with US$1.5 billion.

FTX was valued at US$32 billion earlier this week following a US$400 million funding round. The company has spent close to US$1 billion on recent acquisitions, including digital asset tracking app Blockfolio and crypto-derivatives platform LedgerX, now known as FTX US Derivatives.

Quoine's platform will be gradually integrated with FTX's products. FTX customers in Japan will be moved over to the application and should expect email notifications with details on the transition. The transfer will go into effect on March 30. BLOOMBERG