Bitcoin wallet Coinbase gets Japanese investment boost
In a major boost for the digital currency, the worlds largest Bitcoin wallet has just been granted a significant investment from Japanese bank Bank of Tokyo Mitsubishi UFJ
Coinbase, currently the world’s largest Bitcoin company, announced July 7 that it received $10.5m from Japanese investors to facilitate its international expansion. The investment was awarded by the Bank of Tokyo Mitsubishi UFJ, specifically its Mitsubishi UFJ Capital unit, and Sozo Ventures, in what amounts to an unusually risky move for a major Japanese investor.
Founded in 2012, Coinbase is a bitcoin wallet and platform for both merchants and consumers. To date, the San Francisco-based company has a user base of four million and a market capitalisation of approximately $6.5bn. Granted the currency itself has strayed from the headlines recently after reaching fever pitch back in late 2013 early 2014, when prices spiked at $1,000. However, now that the dust has settled following the downfall of Mt Gox and Silk Road, some analysts are of the opinion that the currency is well placed to enter the mainstream.
Bitcoin’s image in Japan was left wanting after the Tokyo-based platform Mt Gox filed for bankruptcy in 2014 and lost hundreds of millions of dollars in the process
The investment builds on a budding Japanese appetite for financial technology, now that the more traditional lending sector has been hit by low interest rates and a slump in business confidence. Partnering with leading financial institutions is important for Coinbase, in that it not only helps cement the currency’s legitimacy, but builds on its renown in new locations.
“BTMU will be a strong partner for us, both in Asia and globally”, said Sam Rosenblum, Head of International Expansion at Coinbase, speaking in a phone interview with Reuters. “Japan will certainly be an important market for us, and one that is pretty critical for the development of digital currencies.”
The company is currently operational in 32 countries, Singapore being the only one in Asia. Unfortunately, Bitcoin’s image in Japan was left wanting after the Tokyo-based platform Mt Gox filed for bankruptcy in 2014 and lost hundreds of millions of dollars in the process. For Coinbase to do business in Japan, it must first gain regulatory approval from the country’s Financial Services Agency, but financial backing from such a major bank bodes well for the company’s prospects.
