Rakuten, the biggest e-commerce company in Japan, has officially entered the cryptocurrency market. Rakuten has over 102 million users and is the 14th largest internet company in the world by annualized revenue.
What are Rakuten targeting?
Last month, Rakuten reportedly received approval from Japan’s Financial Services Agency (FSA) to operate a crypto exchange.
In an official statement, Rakuten said that Rakuten Wallet will operate as a licensed crypto trading platform.
Rakuten and long term view
The firm said that the long-term adoption of cryptocurrencies in e-commerce and peer-to-peer payments will increase.
Therefore it is important for the company to provide cryptocurrency trading services.
The company said.
“In areas including online trading, offline sales, and peer-to-peer transactions, the territory of cryptocurrency-based systems will expand. To provide cryptocurrency payment services efficiently, it is necessary to have a cryptocurrency trading function.”
Why Rakuten entering crypto is big news
Rakuten integrating a cryptocurrency payment system into its existing payments infrastructure to a licensed exchange in Japan is a significant endorsement of the power and potential of crypto.
Over a hundred million users utilize Rakuten to purchase products and when done with cryptocurrencies, payment service providers often charge fees to sustain their operations.
If Rakuten considers accepting cryptocurrencies in the future and it already has a fully functioning exchange in place, it could generate a new source of revenue from transaction fees or also potentially provide users with the merit of low fees.
Moreover, if executed correctly, a cryptocurrency exchange run by a reputable technology giant could appeal to the retail market.
This would present a multi-billion dollar opportunity for the company in the years to come.
The entrance of a leading e-commerce company could contribute to the recovery of the confidence of investors in the crypto exchange market. Rakuten entering crypto is a strong sign of the future of crypto. Thankyou for reading our post, we’d be grateful if you’d share it on your social media if you enjoyed it.