Japan’s Sumitomo Mitsui Trust Bank, or SMTB, launched its first asset-backed securities note on March 29 in partnership with Securities.
This tool was the first FIEA compliant security token released on the Japanese market. The token received an ‘a-1’ rating from Japan’s rating agency, Rating and Investment Information, Inc., indicating that the product is likely to meet its short-term obligations.
The token was created by encoding the recipient’s paper certificates that reflect the investor’s ownership of the underlying asset. SMTB has also established a trust company to manage the underlying securitized investments.
SMTB has released a product using the Securitize token security platform. Securitize was founded in the US in 2017 and then opened a Japanese subsidiary that has provided investments supported by some of the country’s leading companies, including Sony, SBI and Softank.
In March 2020, Securitize joined forces with Tokyo-based LIFULL to create a token platform for real estate investments.
In a joint announcement with Cointelegraph, SMBT’s Hirohito Neji expressed pride in the bank’s acceptance of digital securities and said:
“We are committed to proactively developing and delivering innovative solutions to our customers based on their changing needs, combining cutting-edge digital technology with our traditional trust banking experience.”
SMBT is a member of the Japan Security Token Association together with local telecom giants NTT and Softbank. The company first began exploring blockchain in October 2016 when it teamed up with IBM to explore the use of DLT to improve asset management, real estate and banking.
Security Token offers, or STOs, have recently gained widespread acceptance in Japan since the Japanese STO Association was recognized by the National Finance Agency in May last year.