Coincheck, a Tokyo-based cryptocurrency exchange, revealed that it has agreed to merge with special purpose acquisition company Thunder Bridge Capital Partners in a $1.25 billion transaction to go public in the United States.
Coincheck’s SPAC arrangement comes as Japan attempts to stay up with the global crypto business by speeding up the lengthy screening procedure for cryptocurrency listings on the country’s trading platforms.
According to Nikkei Asia, the Japan Virtual and Crypto Assets Exchange Association, which represents 31 exchanges, announced on Tuesday that it intends to eliminate at least 18 crypto tokens from the certification process. Popular digital assets such as bitcoin, ether, XRP, and Litecoin are among the options, according to the study.
According to a release, Coincheck, a subsidiary of Monex Group, a Japanese online brokerage firm, is slated to float on the Nasdaq Global Select Market in the second half of 2022. If there are no shareholder redemptions and before expenses, the combined business will receive $237 million in cash held in Thunder Bridge Capital Partners’ trust.
The deal will help Coincheck to expand its business in Japan and beyond, according to the crypto marketplace. The merger will also allow the company to expand its product offerings while continuing to invest in security and infrastructure.
Overview of Coincheck
Coincheck, which was founded in 2012, bills itself as one of the largest multi-cryptocurrency marketplaces and digital asset exchanges in Japan. According to the firm, it serves 1.5 million verified consumers or 28% of Japan’s 5.5 million cryptocurrency owners. The exchanges conducted nearly $100 million in spot digital currency deals in the previous 24 hours.
When Coincheck disclosed in early 2018 that over $500 million worth of digital currency had been taken from its platform, it became one of the greatest crypto hacks in history. Later that year, Monex Group bought Coincheck for $34 million, announcing intentions for an initial public offering for the crypto platform at the time.
According to the announcement, Monex will possess around 82 percent of the merged business after the merger, down from its present ownership of 94.2 percent. Existing Coincheck stockholders will be entitled to obtain up to 50 million shares dependent on the stock’s future performance.
Also Read: List of Regulated Best Crypto Exchanges
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