Sony Enters Crypto Market with Acquisition of Amber Japan's WhaleFin Exchange

Sony Group, one of Japan’s foremost conglomerates, is poised to enter the cryptocurrency market with the launch of a new crypto exchange. This move follows its acquisition of Amber Japan and its WhaleFin exchange, which will be rebranded as S.BLOX Co.

According to a statement released on July 1, Sony plans to enhance the user experience by redesigning the UI and launching a new app to facilitate easier access. The revamped platform will also support a broader range of currencies and functionalities. However, the timeline for the launch of the new exchange remains undisclosed.

The acquisition marks a significant step for Sony, which will add cryptocurrency trading to its diverse portfolio of businesses in gaming, music, and electronics. This strategic expansion is anticipated to enhance Sony's market value, currently over $100 billion.

Amber Japan’s journey to this acquisition included overcoming major setbacks. The company, originally DeCurret before its rebranding by Amber Group, encountered severe financial difficulties in 2022 due to its exposure to the FTX exchange collapse. To address these issues, Amber Japan secured $300 million in a Series C funding round in December 2022, with significant contributions from Fenbushi Capital, Temasek, and Sequoia China. This funding was crucial in protecting customers impacted by the FTX debacle.

Earlier in April 2023, Amber Group revealed plans to divest its Japanese subsidiary to concentrate on institutional clients rather than the retail market. Sony’s acquisition aligns with this strategic shift.

This isn’t Sony’s initial venture into the cryptocurrency and blockchain sector. In 2023, Sony filed a patent for a framework to use NFTs as in-game assets on its gaming platforms, showcasing its ongoing commitment to innovation in emerging technologies.

With the acquisition of Amber Japan’s WhaleFin exchange, Sony is set to make significant strides in the crypto industry, further diversifying its business operations and solidifying its presence in the digital economy.