Sony Expands into Crypto with Acquisition of Amber Japan

By: Eliza Bennet

Sony Group, a renowned Japanese conglomerate, is venturing into the cryptocurrency sector following its acquisition of Amber Japan. The announcement, made on July 1, revealed that Sony will take over Amber Japan's WhaleFin exchange, which will be rebranded as S.BLOX Co.

An official statement from Sony highlighted several planned transformations. It mentioned, "In addition to redesigning the UI screen, the renewal of WhaleFin will include the release of a new app to provide an easier-to-use service. After the renewal, we also plan to further expand the supported currencies and functions." However, details regarding the operational date of the new exchange were not disclosed.

This strategic acquisition takes place more than two years after Amber Group, based in Singapore, acquired and rebranded DeCurret, a regulated Japanese crypto exchange, turning it into Amber Japan. Despite initial success, Amber Japan encountered significant difficulties in 2022 due to its involvement with the FTX exchange, which had collapsed and led to substantial financial losses.

To counter these financial setbacks, Amber Japan raised $300 million in a Series C funding round in December 2022, with notable investments from Fenbushi Capital, Temasek, and Sequoia China. This fundraise was intended to safeguard customers affected by the FTX collapse.

Sony's acquisition is timely, following an Amber Group announcement in April 2023 regarding its intention to offload its Japanese subsidiary to concentrate on institutional rather than retail business. This strategic purchase will broaden Sony Group's portfolio to include cryptocurrency, complementing its established ventures in gaming, music, and electronics. The acquisition is anticipated to elevate Sony’s market value beyond its current valuation of $100 billion.

Interestingly, this is not Sony's first endeavor into the burgeoning crypto industry. In 2023, Sony filed a patent for an NFT framework projected to enable the use of NFTs as in-game assets across its various gaming platforms. This move represents Sony's commitment to integrating cutting-edge blockchain technology into its expansive business model.

For more information on companies like Amber Group, visit their official website.