Huobi Japan, an arm of crypto exchange firm Huobi Global announced today that it had raised $4.6 million in new equity funding from financial instruments business operator, Financial Products Group (FPG).
The funding which was reportedly completed through a third-party allotment of shares to FPG will provide Huobi Japan with the needed resources to expand its business in the country, as well as venture into new territory.
Noteworthily, Huobi Japan plans to explore the concept of security token offerings (STOs), the new fundraising mechanism which is fast replacing initial coin offerings (ICOs), and other blockchain-based funding models.
A translated version of Huobi Japan’s announcement today reportedly reads,
[We are] aiming to contribute to the digitalization of the Japanese securities market by integrating the company’s professional financial business with our security-focused blockchain technology to provide new financial assets and payment methods.
Apparently, Huobi Japan is working on the roll-out of a platform that allows for the tokenization of traditional securities and expressed confidence that it can create more abundant, safer, and more reliable services for clients. The firm is also one of the few companies licensed by the Japanese Financial Services Agency (FSA) to offer crypto-related services.
Meanwhile, the planned move by Huobi Japan also comes amid growing investor appetite for tokenized securities in the country and ongoing efforts by local companies to satisfy that demand.
Earlier this month, Stmarket.co reported that six brokerage firms — Monex, Nomura Securities, Rakuten Securities, SBI Securities, Daiwa Securities, and Kabu.com Securities — formed a new Industry Association in Japan to promote the adoption of security token offerings (STOs).