Sony Group, renowned for its games, music, and cameras, officially ventured into the crypto exchange market by acquiring Amber Japan.
The company, formerly known as DeCurret, is the Japanese subsidiary of the global Amber Group, offering regulated digital asset trading services.
So Sony now operate a crypto exchange. What a time to be alive!
Where’s the money?
Amber Group expanded into Japan by acquiring and rebranding the Japanese crypto exchange DeCurret to Amber Japan in 2022.
The start wasn’t smooth, as the company faced financial challenges due to its trading capital being tied to the now-defunct crypto exchange FTX.
In response to the collapse of FTX, Amber Group shifted its fundraising strategy and secured a $300 million from corporate investors, and the funding was led by Fenbushi Capital with contributions from major backers like Temasek, Sequoia China, Pantera, Tiger, and Coinbase.
Step by step
Sony’s acquisition of Amber Japan is part of its strategy to diversify its portfolio, which already has a market value exceeding $100 billion.
Not the Amber aquisition is the first move of the company, for the past few years, Sony has been exploring blockchain and also non-fungible tokens in the gaming sector.
In March 2023, Sony filed an own patent, called “NFT Framework for Transferring and Using Digital Assets Between Games Platforms.”
This system allows for cross-platform use of NFTs, including NFT-locked gameplay, limited-use in-game tasks, and rewarding players with NFTs.
Why Bitcoin?
There are two main approaches in the corporate world towards the crypto industry.
One approach, taken by companies like MicroStrategy and Metaplanet, involves purchasing Bitcoin as a reserve asset, serving as a hedge against government debasement and for savings rather than trading or cash flow.
This method is currently less common but is expected to become more popular in the coming years.
The other approach involves direct participation in the crypto industry, developing, and offering products and services for users and clients as a profit-driven venture.
Sony’s entry into the crypto space in this way signals a major development, showing the importance, and growing acceptance of the industry.
