Bitcoin startup Coinbase which operates the bitcoin exchange GDAX and the Coinbase wallet is set to receive another investment, to the tune of $10.5 million from Japanese company Mitsubishi UFJ Financial Group Inc. The investments will be coming from MUFG’s core banking unit and a MUFG venture-capital fund, bank officials said.
MUFG is a Japanese bank holding/financial services company headquartered in Tokyo, Japan. MUFG holds assets of around $2.5 trillion and is one of the main companies of the Mitsubishi Group. It is Japan’s largest financial group and the world’s second largest bank holding company. Mitsubishi UFJ Financial Group is the second largest public company in Japan when measured by market capitalization.
This will be the company’s first foray into the world of bitcoin. According to the Wall Street Journal, Coinbase is going to receive the new round of investment from MUFG to ramp up operations in Asia.
Coinbase is by far the highest funded startup in the bitcoin space. Previously Coinbase had received $106 million in venture capital, and with this new round of funding it will bring them to a total of $116.5 million in overall investments.
“Partnering with leading global financial institutions is a key part of our strategy and we are thrilled to be working with BTMU,” said Mr. Ehrsam, the company’s co-founder and president to the WSJ.
MUFG senior manager Yuichiro Kawasaki said Coinbase has strong compliance systems to prevent wrongdoing and has received licenses to offer money transmission services in many U.S. states.
Coinbase has also been seeking better fintech regulations in the U.S. to establish in part, policies that encourage partnerships among banks and fintech firms, including partnerships that may result in fintech firms offering separate products to shared customers with banks.