Bitflyer, Japan's largest and the world's leading bitcoin exchange by trading volume, announced on Friday that it will launch a US-based bitcoin exchange this fall. The new platform will initially offer BTC/USD trading pairs, targeting professional traders and institutional investors, with plans to expand into additional trading pairs and products later.
Bitflyer CEO Yuzo Kano stated: “While Bitflyer, Inc. is headquartered in Japan, my vision was always to create a global company, and I am excited that the US will be its first step toward global expansion. Bitcoin is a global currency, now our exchange will be global too.” Founded in 2014, Bitflyer has raised over 4.1 billion yen (approximately $36 million) in venture capital funding. The company operates a merchant payment processing service alongside its exchange, which Coinhills ranks as the largest in both Japan and the world by bitcoin trading volume. The Japanese yen remains the most traded fiat currency for bitcoin globally.
US Subsidiary and Regulatory Milestone
The upcoming US exchange will be operated by the company's wholly-owned subsidiary, Bitflyer USA Inc, headquartered in San Francisco. This marks the company's first expansion into a new international market. Notably, the announcement came exactly one week after Bitfinex, the leading global exchange for US dollar bitcoin trading volume, announced its exit from the US market, citing disproportionate resource allocation for support, legal, and regulatory compliance. In contrast, Bitflyer has already obtained regulatory approval to operate in 34 states. For comparison, Coinbase holds licenses in 38 US states.
Trading with 'Mrs. Watanabe'
According to the announcement, Bitflyer has facilitated over $40 billion worth of bitcoin trades, including $30 billion in 2017 alone. This growth is partly attributed to the influential class of Japanese retail investors known as “Mrs. Watanabe,” a major force in the global forex markets. Bitflyer's COO Bartek Ringwelski commented: “There is a concept of 'Mrs. Watanabe' in the Japanese forex market; she is the personification of household trading in Japan. Bitflyer aims to be the first exchange to allow US bitcoin traders to trade with Mrs. Watanabe.”
Earlier reports indicated that Mrs. Watanabe's interest in bitcoin was sparked after the Japanese government formally recognized bitcoin as a legal payment method in April 2017. Japan's near-zero savings rates have also driven households to seek higher returns in bitcoin. Ivan Brightly, a portfolio manager at New York-based investment manager Full Node Capital LLC, added: “Tokyo has been the epicenter for forex trading for decades. As the market leader in Japan, I expect Bitflyer to bring significant liquidity and market expertise to US markets.”