Mitsubishi UFJ Financial Group is leading a 22 member research consortium to develop standards around security token management. MUFG is one of Japan’s largest financial group and the fifth-largest bank in the world by assets.
The Security Token Research Consortium group includes brokers, dealers, security issuers, with technology companies such as NTT Docomo Inc. and KDDI Corp, the two largest telecommunications companies in Japan.
Securitize is the only issuance platform provider that has joined the consortium.
The CEO of Securitize, Carlos Domingo says that tokenization has some of the best opportunities to create efficiencies.
The Consortium Will Develop And Offer Financial Transactions Services
The consortium is focused on developing and offering financial transactions services by using blockchain with an automatic settlement for securities and funds.
It is planning to develop “Progmat”, a dedicated security token blockchain for risk minimization to manage securitized assets, including trust functions to minimize counterparty risk.
The consortium will apply for a Japanese patent regarding infrastructure and organizational structure for managing security tokens.
Securitize, earlier this year launched its digital security offering service and a referral network that would help in companies issuing and managing digital securities as a transfer agent. It would play as the official record-keeper of securities that are being issued on the blockchain.
The company raised a $14 million funding round backed by MUFG Innovation Partners, Nomura Holdings and Santander InnoVentures.
MUFG has several other blockchain projects in its innovation pipeline.