Sony enters cryptocurrency market with acquisition of Amber Japan

Sony Group, a leading conglomerate in Japan, is set to launch a cryptocurrency exchange after acquiring Amber Japan.

According to a statement on July 1, Sony will become the new owner of Amber Japan’s WhaleFin exchange, which will be renamed S.BLOX Co. Stated:

“In addition to the redesign of the user interface screen, the WhaleFin relaunch will include the release of a new app that will provide an easier-to-use service. We also plan to further expand the supported currencies and features after the relaunch.”

However, the announcement did not provide information on when the new exchange will start operating.

The acquisition comes more than two years after Singapore-based Amber Group acquired DeCurret, a regulated Japanese cryptocurrency exchange, and renamed it Amber Japan.

Reports suggest that the exchange faced significant challenges in 2022 due to its exposure to the FTX stock market crash, which led to significant losses.

To ease financial concerns, Amber Japan raised $300 million in a Series C financing round in December 2022 with investments from Fenbushi Capital, Temasek and Sequoia China. This financing was intended to protect customers affected by the collapse of FTX.

The Sony acquisition follows Amber Group’s announcement in April 2023 that it was considering selling its Japanese subsidiary to focus on its institutional rather than retail business.

This acquisition will expand Sony Group’s portfolio to include cryptocurrencies, as well as gaming, music and electronics businesses. The move is also expected to increase Sony’s market value above its current valuation of $100 billion.

Meanwhile, this is not Sony’s first entry into an emerging industry. In 2023, Sony filed a patent for an NFT platform that will enable NFTs to be used as in-game assets on its gaming platforms.

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