Bank of Japan Sumitomo Mitsui launches first security token
Sumitomo Mitsui Bank has partnered with Securifying to launch Japan’s first security token to comply with the country’s Financial Instruments and Exchange Act.
Japan-based bank Sumitomo Mitsui Trust Bank, or SMTB, launched its first asset-backed security token in a partnership with Securifying on March 29.
This instrument is the first security token to comply with the Financial Instruments and Exchange Act (FIEA) to launch in the Japanese Market. The token has received a “a-1 rating” from Japanese rating agency, Investment Information and Ratings, Inc., which shows that the product is highly capable of fulfilling short-term obligations.
Tokens are created by encrypting paper-based beneficiary certificates that represent an investor’s ownership of an underlying asset. SMTB has also created a trust company to manage its securitized underlying investments.
SMTB issued the product using Securifying’s stock crypto platform. Securifying was established in the United States in 2017, before establishing a division in Japan to ensure investments were supported by some of the country’s leading companies including Sony, SBI and SoftBank.
In March 2020, Securifying partnered with Tokyo-based LIFULL to create an encrypted real estate investment platform.
Mr. Hirohito Niji of SMBT expressed his pride in the bank holding digital securities, he shared:
“We are committed to proactively developing and delivering innovative solutions to our customers with their changing needs by combining advanced digital technologies and trust banking expertise. our usual. ”
SMBT is a member of the Japan Security Token Association along with local telecom giants NTT and Softbank. The company first started exploring blockchain in October 2016, when they partnered with IBM to explore the use of DLT to improve the efficiency of its asset management, real estate, and banking businesses. .
Securities token offering services, or STOs, have recently been widely accepted in Japan, with the country’s Financial Services Authority recognizing the Japan STO association last May.