Monex Group, and online brokerage company based in Japan, which recently acquired cryptocurrency exchange Coincheck, has announced that it intends to develop its own blockchain platform, with an initial coin offering to follow.
The company, in its most recent financial filing of April 26 said its Japanese branch will oversee the development of the blockchain platform. The company also has divisions in Asia and U.S.
The company said that the Japanese arm will start using blockchain technology in executing all financial transactions as well as trading of financial products. The company noted that the program is aimed at increasing safety and reducing costs.
Although the company did not detailed information on the plans of developing blockchain, it for the first time gave details of Coincheck’s financial standing after it was affected by a major hack and later bought out by a the brokerage.
In the financial filings, Monex Group disclosed that the exchange is reporting a $57 million pre-tax profit for the first quarter of the first financial year ending March 2018. The profit was reported after deducting $432 million in extraordinary loss.
Although the company did not give details of what caused the loss, Coincheck had in past promised that it will refund all investors around $420 million for their holdings that was lost in the January hacking incidence.
According to CoinDesk, Coincheck announced on January 26 that about 530 million NEM worth of token was lost from its platform following the hack, which at the time was valued at about $530 million.
Immediately after the hacking incident, the exchange announced that all investors that had lost their holdings would be compensated every token lost at the rate of $0.81 per token. This could cumulatively amount to $420 million.
Monex is the third largest online brokerage in Japan. The brokerage recently announced that it had completed the acquisition of Coincheck. The deal was valued at 3.6 billion yen (USD 33.6 million). This is one of the latest significant moves by a leading financial company to venture into the digital currency industry.