FPG said it bought into the company because of its prospects, as Huobi Japan will be developing solutions related to virtual currencies and payments, and the two may plan to collaborate on projects related to tokenization of the securities market, given FPG’s expertise in finance and real estate.

Huobi Japan has received almost 500 million yen ($4.6 million) in investment from a Tokyo-listed company involved in leasing, real estate, insurance brokerage and mergers and acquisitions.

According to releases from the company and the investor, Financial Products Group (FPG) purchased 499,968,000 yen worth of shares from the Japanese subsidiary of Singapore-incorporated Huobi Asset Investments on Oct. 25.

The exact use of funds was not detailed, though the companies said the new capital will be deployed in financing Huobi Japan’s expansion in the country.

It is not clear from the announcement what percentage of ownership the Japanese investment company will receive, though the disclosure did say that Huobi Japan’s paid-up capital was $5.7 million, while the company’s website puts total capital, including reserves, at $11 million as of February 2019.

FPG has not yet responded to CoinDesk’s enquiry seeking for clarification.

Huobi was founded in 2013 in Beijing. Its exchange, Huobi Global, is ranked as the 15th largest exchange in the world by reported volume, according to CoinMarketCap data. The company also has the Huobi Token, which is ranked 17the in terms of market capitalization.

Huobi Japan was founded in 2016. In 2018, the company acquired BitTrade, a fully-licensed crypto exchange in Japan. Bittrade’s name was changed to Huobi Japan, and trading began in January 2019 in six virtual currencies–XRP, BTC, ETH, BCH, LTC and MONA.

Reuters reported in April that Huobi Japan was raided by the Financial Services Agency. The regulator was checking to see whether adequate compliance measures were in place following the change in management, according to the story.

Huobi Opens Brokerage Platform for Institutional Investors

Huobi Group is opening its first digital asset brokerage platform, offering trading products and services to institutional clients and high net-worth customers.

Announced Tuesday, the Gibraltar-based Huobi Brokerage is also the first product launched under the company’s Global Institutional Business (GIB) division, according to a company statement. Formed in November 2019, the new division was created as part of Huobi’s effort to better serve institutional investors in the global market.

The statement said the platform will enable institutional investors to use crypto services such as liquidity pools, a regulated fiat channel and over-the-counter (OTC) trading via its smart order routing system and trading algorithm.

“One of the core value propositions of Huobi Brokerage is that it provides clients with best-price execution on large block orders,” Ciara Sun, vice president of Global Business at Huobi Group, told CoinDesk.

Clients will also have access to real-time trade quotes and price locks that support block trades  of major crypto currencies and stablecoins, including BTC, USDT, HUSD, PAX, TUSD, and USDC. According to the statement, support for ETH, EOS, BCH, LTC, and XRP is expected to be available later during the first quarter of 2020.

The platform will have a suite of services to add liquidity as well, targeting OTC, exchange aggregation and customized lending and financing. Huobi plans to roll out custodian services, and interest rate and alpha products in the second quarter of this year. According to Sun, the platform’s financing & lending services and structure hedging products is set to be launched for the third quarter.

The company claimed Huobi’s institutional business has grown significantly since it launched the GIB project last year. The new division now has offices in London, Singapore and Hong Kong.

“GIB is a central part of Huobi’s international expansion strategy, which is the company’s top priority for 2020,” Sun said.

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