In Brief:
- FTX is acquiring licensed Japanese crypto exchange Liquid.
- The acquisition includes all operating subsidiaries of Liquid Group.
- The deal is expected to close in March 2022.
FTX, one of the world’s fastest-growing cryptocurrency trading platforms, has announced the acquisition of Liquid, a crypto business. The acquisition comprises all of Liquid Group’s operating companies including such as Quoine Corporation and Quoine Pte.
With effect from March 30, 2022, FTX’s existing Japanese customers will be moved to Quoine, according to the company. FTX intends to help both retail and institutional bitcoin investors in Japan with the purchase.
The deal’s terms haven’t been revealed, but Liquid was valued at over $1 billion in its initial round of funding in 2019. Subject to customary closing conditions, the transaction is scheduled to close in March 2022.
Quoine is a Liquid wholly-owned subsidiary with a Type I Financial Instruments Business licence and a licenced Japanese crypto-asset exchange. Quoine, which operates under the Liquid brand, was one of the first crypto exchanges to be recognised by Japan’s financial regulator in 2017.
The Liquid is something FTX is already familiar with. The Liquid was hacked for roughly $100 million in August 2021, and FTX contributed $120 million in debt funding. Following FTX’s acquisition of Liquid, Quoine will gradually merge its products and services with FTX’s, allowing FTX’s existing Japanese clients to continue using Quoine’s platform.
Sam Bankman-Fried, the CEO of FTX, hopes to one-day takeover Goldman Sachs and CME Group, two traditional financial behemoths. The digital exchange, following the success of its Series C investment round has become one of the most valuable firms in the crypto industry. The largest Music Festival Coachella is currently collaborating with FTX for its debut into the NFTs.
