The largest financial company in Japan, SBI Holdings, has reportedly acquired TaoTao, one of the leading digital currency exchanges in the country. The crypto exchange was affiliated with Yahoo! Japan, as it owned the most stake in the exchanges. Meanwhile, the development today comes soon after the Japanese exchange revealed that its January-planned partnership with Binance could no longer hold.
SBI Holdings acquires all stake in TaoTao
According to the report today, the Japanese crypto exchange was acquired by the SBI Liquidity Market, which is the derivatives and foreign exchange subsidiary of SBI. Previously, Yahoo! Japan held about 40 percent stake in TaoTao; however, the financial company purchased all the exchange’s shares. This adds the exchange to the list of the companies wholly owned by SBI.
However, TaoTao is not the first digital currency platform to be owned by Japan’s SBI Holdings. Last year, SBI owned its first cryptocurrency exchange via the establishment of SBI VC Trade, another wholly-owned subsidiary. By acquiring the new cryptocurrency platform, SBI is looking to expand its expertise and services that relate to digital currencies.
“In the future, we will make maximum use of the management resources such as knowledge of the SBI Group as a comprehensive financial group, as well as the customer base and service expertise of the crypto assets that TaoTao has cultivated so far […],” the company’s statement reads.
Failed Binance Alliance
Launched in May 2019, the TaoTao exchange enabled Japanese investors an easy medium to purchase and trade digital currencies. During the time of launch, the exchange only offered trading services for two cryptocurrencies, which include Bitcoin (BTC) and Ether (ETH). It also disclosed plans to debut margin positions for other cryptos like Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC).
Later in January 2020, the exchange disclosed its plans to partner with the largest cryptocurrency exchange, Binance. Under the partnership, the Japanese exchange was supposed to leverage on Binance’s technical know-how to debut an advanced trading platform. However, on Tuesday, the Japanese exchange said the partnership couldn’t go through as they didn’t reach an agreement. Hence, the planned alliance with Binance was abandoned.