Japan’s most influential telecom operator KDDI is set to acquire a stake in crypto platform Cincheck, amid a push towards crypto expansion.
The telecom giant is in talks to scoop up nearly 14.9 percent stake in the local crypto exchange for nearly $65 million. The purchase will be likely staged as an equity swap deal with KDDI subscribing for 28.5 million newly issued Coincheck Group shares at $2.28 each, Coincheck said on Wednesday. The deal is expected to close in June.
The deal comes against the backdrop of a rise in Japan’s crypto adoption. Reports highlight that the nation’s cryptocurrency market is experiencing robust growth, with projected revenue expected to reach $1,168.1 million by 2033. Japan’s digital asset sector is expanding at a CAGR of 15.9 percent between 2026 and 2033.
KDDI and Coincheck sign extra alliance
Coincheck and KDDI have also formed a broader business partnership alongside KDDI’s investment in the crypto exchange operator. The arrangement will see the two firms working together on customer referrals, revenue-sharing systems, and referral fees to help ensure that both benefit from sustainable growth.
The partnership seeks to promote access to cryptocurrency products for ordinary users in Japan. By leveraging their partnership, KDDI clients would have increased access to cryptocurrency products.
These include digital asset trading, custody services, staking and asset management tools operated by Coincheck.
Both firms believe the alliance could open up new commercial opportunities as the country’s digital asset industry continues to expand and mature.
KDDI’s new purchase comes after previous crypto expansion
KDDI has been steadily expanding its involvement in crypto and Web3 initiatives since at least 2023. The firm had first introduced αU, its own metaverse and Web3 platform.
The service included features such as an NFT marketplace and a crypto wallet, giving users access to digital collectibles. The firm’s crypto expansion also aimed at providing blockchain-based experiences and cryptocurrency-related services within a single ecosystem.
The telecom giant later deepened its Web3 strategy through a capital and business partnership with HashPort, a Japan-based developer focused on Web3 wallet technology.
The collaboration was linked to plans that would allow users to convert loyalty points into stablecoins and cryptocurrencies, and later exchange those digital assets for au PAY gift cards.
As part of the Coincheck Group investment agreement, KDDI will also receive rights to register its shares and nominate one non-executive director to Coincheck Group’s board at the company’s next annual general meeting, which is expected to take place in September.