Tokyo Stock Exchange Standard-listed unbanked inc. discontinued its crypto asset business involving the physical gold-linked token “Kinka” and resolved to dissolve and liquidate its consolidated subsidiaries. The discontinuation process is scheduled to reach its deadline at the end of October, with liquidation to be completed by the end of March 2027.
unbanked inc., a Tokyo Stock Exchange Standard-listed company engaged in bullion sales, resolved at a Board of Directors meeting to discontinue “Kinka” as a crypto asset business and dissolve and liquidate 3 consolidated subsidiaries. The entities subject to discontinuation are the issuer Kinka (BVI), Ltd., based in the British Virgin Islands, and 2 Japanese entities, the general incorporated association Gold Fund and Gold Management LLC.
Kinka was sold to residents outside Japan as a gold-backed product, but sales fell below expectations because of the overwhelming market share of competing products and uncertainties in the trading environment involving USDA, among other factors. Efforts to turn around sales had also encountered difficulties.
Although issuance on the Cardano blockchain began in September 2024, the company saw no prospect of USDA being handled on centralized overseas exchanges, while the legal compliance risks associated with sales on decentralized exchanges also became an issue, leading it to abandon sales on Cardano. After the management team moved to a new structure on 30 September, it assessed the profitability of continuing the business and decided to discontinue it and proceed with liquidation.
As part of the discontinuation process, 17:00 on 30 October will be the final deadline for buyback and bullion exchange requests for Kinka on Ethereum, and the entire amount will be burned after settlement is completed. Because there have been no sales of Kinka on Cardano, the entire amount will also be burned during October and handling of the token will be discontinued. Dissolution and liquidation are scheduled to be completed by the end of March 2027, and the impact on revenue is expected to be small.