Coincheck Plans to Acquire French Crypto Brokerage Aplo, Expanding Operations Beyond Japan

In a move that signals the growing consolidation within the crypto industry, Japanese crypto exchange Coincheck has announced its first acquisition in Europe. The company has agreed to acquire French digital asset prime brokerage Aplo, a move that is expected to close in October.

Founded in 2019, Aplo has built a trading application and infrastructure serving over 60 institutional clients. The acquisition comes as Coincheck continues to grow, having reported a 44% jump in trading volume to ¥337.5 billion ($2.25 billion) in its most recent annual financial report. The company also saw a 15% increase in customer assets, reaching ¥859.2 billion ($5.7 billion).

Coincheck's CEO, Gary Simanson, stated that the acquisition of Aplo would leave the firms "better positioned to meet the needs of institutional crypto investors." He further added that the acquisition would enable Coincheck to provide a B2B2C offering to "banks looking to make crypto investing available to their customers."

Aplo is registered with France's financial regulator AMF and is pursuing a full license under the European Union's crypto framework, MiCA. This move is expected to strengthen Coincheck's regulatory compliance and expand its global footprint.

The acquisition deal is structured as a stock purchase agreement. All four founders of Aplo will remain with the firm after the deal closes. This marks a significant step for Coincheck as it expands its operations outside of Japan.

The crypto industry is experiencing consolidation as regulatory clarity and institutional adoption continue to rise. In October, Monex Group had planned to acquire Coincheck, and the company made its first announcement regarding an acquisition in Europe in July 2022. Notably, Coinbase also acquired Liquifi in July, and completed a $2.9 billion acquisition of derivatives exchange Deribit last month.

Ripple bought Galaxy-backed stablecoin issuer Rail for $200 million, and Citi-backed Talos struck a $100 million deal for analytics firm Coin Metrics. Bitcoin miner Core Scientific's biggest shareholder blocked a proposed $9 billion takeover by CoreWeave, indicating the complexities and challenges that come with consolidation in the crypto industry.

As the crypto industry continues to evolve, it is expected that more acquisitions and strategic investments will be made, both inside and outside of Japan, as companies seek to expand their reach and strengthen their positions. With the acquisition of Aplo, Coincheck is well-positioned to capitalise on these opportunities and continue its growth trajectory.

Coincheck has grown into Japan's most downloaded crypto trading app, and with the acquisition of Aplo, the company is set to make its mark in the European market. The acquisition is a testament to Coincheck's commitment to serving its clients and staying at the forefront of the crypto industry.

Coincheck Plans to Acquire French Crypto Brokerage Aplo, Expanding Operations Beyond Japan