2025: From Breakthroughs to Integration
Happy New Year! I would like to express my sincere gratitude to all customers who chose bitFlyer services in 2024. In addition, I would like to express my appreciation to all crypto enthusiasts, government and ministry officials, and industry organizations for their exceptional support. As we welcome the new year, I extend my best wishes for a prosperous 2025.
The past year marked a significant shift in societal perceptions of crypto. Bitcoin spot ETFs were launched in major markets like the United States, Canada, and Germany, spurring unprecedented flows of capital from traditional finance into crypto markets. Moreover, in the U.S. presidential election, crypto emerged as a key issue, and the victorious Donald Trump rolled out a series of crypto-friendly policies. The market capitalization of crypto assets surpassed ¥550 trillion, with Bitcoin alone exceeding ¥300 trillion, solidifying its position as one of the primary asset classes in society. In many ways, 2024 was a landmark year where crypto became broadly acknowledged and accepted by society.
And now, 2025. This year will be a critical juncture—a defining moment to solidify this momentum and ensure its long-term sustainability. In Japan in particular, the tax system is a major stumbling block. The world is becoming more aware that crypto assets have the capacity to enrich people's lives. While the same is true in Japan, many people are hesitant to get involved with crypto assets because of the high tax rates. Initiatives like the new NISA, the depreciation of the yen, and inflation have all spurred interest in investment in Japanese society, and crypto assets have the potential to become a viable investment option. As a pioneer driving the mainstream adoption of crypto, bitFlyer will continue to lead the industry in 2025 by delivering value-driven services to our customers while actively engaging with society and government to underscore crypto’s potential as a cornerstone of wealth creation for the public.
2024: Reflection and Renewal
Internally, 2024 was a year of reflection and renewal for bitFlyer. We reinvented our cornerstone leveraged trading product, transitioning from "bitFlyer Lightning FX" to "bitFlyer Crypto CFD." This transformation was challenging, but the response from our customers has been overwhelmingly positive, with trading volumes exceeding pre-renewal levels.
Additionally, we returned to the fundamental question of what value an exchange should provide. This led to a significant expansion of our listed assets, adding 16 new tokens—the highest in the domestic market for the year. We remain committed to listening to our customers and continuing to introduce relevant offerings.
2024 was also a year of new challenges. One of these was the acquisition of FTX Japan and the launch of Custodiem. With the growing role of ETFs globally, we anticipate similar trends in Japan, requiring secure storage and management solutions for crypto assets. Managing crypto requires specialized technology and security, which traditional financial institutions—adept at handling fiat currencies and securities—find challenging. With our proprietary technology and security measures that have ensured the safe management of crypto since our founding, bitFlyer is uniquely positioned to lead the institutional custody business. To this end, we have renamed FTX Japan to "Custodiem," reflecting its role as a custodian, and we will focus on building a custody business for institutional investors.
Furthermore, bitFlyer remains the only Japanese crypto exchange with a truly global footprint. Our subsidiaries, "bitFlyer USA, Inc." and "bitFlyer EUROPE S.A.," operate in compliance with local laws and regulations, bringing our services to customers worldwide. In particular, bitFlyer EUROPE S.A. will comply with “MiCA (Markets in Crypto-Assets)”, a new framework for crypto-asset regulations introduced in Europe, and will provide a highly transparent trading environment that places even greater emphasis on customer protection than before.
A Milestone: Surpassing 1 Trillion Yen
A significant milestone for bitFlyer in 2024 was surpassing 1 trillion yen in customer assets under our custody in Japan for the first time since our founding. As of December 2024, this figure reached 1.3 trillion yen—a scale equivalent to the deposit balances of some regional banks. This milestone underscores the trust we have earned and positions us alongside established financial institutions. From the start, bitFlyer has set security as a top management priority, maintaining an impeccable track record with no hacking incidents. We will continue striving to be a trusted, reliable exchange where customers can trade with confidence.
Security is Our Top Priority. Time for Re-Assessment.
The importance of security in the crypto exchange business is growing continuously. The most critical task is to safeguard customers' valuable assets and provide a trust-worthy trading environment. We will reaffirm this foundational principle and commit ourselves to continuously strengthening security in 2025.
2025: Delivering the True Value of Crypto
As societal perceptions of crypto continue to evolve, the spotlight on exchanges will only grow brighter. Having served customers since the dawn of the industry, bitFlyer is uniquely positioned to convey the intrinsic value and utility of crypto to a wider audience.
With this in mind, we aim to provide services and products that meet the diverse needs of our customers. Early in the year, we plan to introduce our Ethereum staking service,allowing customers to generate income not only through trading but also by holding their assets.
Similarly, our coin lending service, launched in December 2024, has exceeded expectations, highlighting a strong demand for income opportunities tied to asset ownership. We will continue refining these services to meet customer expectations.
Staying true to our mission to "Simplify the World with Blockchain," the bitFlyer Group will continue expanding existing services and taking on new challenges to bring the benefits of crypto to an even wider audience.
Thank you for your continued trust and support in 2025.
Best regards,
Yuzo Kano
Representative Director & CEO, bitFlyer Holdings