Japan-based cryptocurrency exchange Bitarg Exchange Tokyo has received an undisclosed amount of funding from internet company Yahoo Japan’s wholly-owned subsidiary Z Corporation in return for a 40% stake.
Financial terms of the deal have not been officially confirmed, but Reuters cited an unnamed source that placed the size of the transaction at ¥2bn to ¥3bn ($18m to $28m). Bitarg’s parent company, CMD Lab, will retain the remaining 60%.
Z Corporation was set up by Yahoo Japan to invest in companies pursuing technologies and services not necessarily aligned with the corporate’s core business activities.
The unit emerged as the investor after reports last month suggested Yahoo Japan was set to invest in Bitarg through its foreign exchange transaction platform, YJFX.
Bitarg is due to launch a cryptocurrency exchange sometime in autumn 2018, having already secured regulatory approval from the country’s Financial Services Authority, and will rely on Yahoo’s expertise in business operation and security.
Nikkei Asian Review had previously reported that Yahoo Japan is expected to made additional investments in Bitarg in early 2019, though no such deal was mentioned in the press release disclosing the funding.