On March 29, Japanese bank Sumitomo Mitsui Trust Bank, or SMTB launched the country’s first ‘a-1’ rated security token in collaboration with Securitize. The token implies with Japan’s country’s Financial Instruments and Exchange Act.
The security token is one of the first product to comply with the Financial Instruments and Exchange Act (FIEA) in the Japanese Market. The token happened to receive an “a-1 rating” from Rating and Investment Information, Inc. The rating indicates that the product is very much capable of fulfilling its short-term obligations. The token was created by tokenizing paper-based beneficiary certificates. The certificates displays the ownership of the investor to an underlying asset. SMTB happens to create a trust company for managing its underlying securitized investments.
Sumitomo Mitsui Trust Bank, largest trust bank in Japan and one of the largest in Asia has issued their first security token using @securitize platform, institutional adoption is coming. English herehttps://t.co/ylrYgIhSYb Japanese here https://t.co/cJEFstnpEY — Carlos Domingo (@carlosdomingo) March 29, 2021
Securitize, founded in the United States in 2017 incorporated its security tokenization platform to issue the product with SMTB. In March 2020, Securitize partnered with Tokyo-based LIFULL to create a tokenized real estate investment platform. With the country’s Financial Services Agency acknowledging the Japan STO association in May 2020, Security token offerings, or STOs, have been gaining mainstream acceptance in Japan.
As reported by Cointelegraph, SMTB’s Hirohito Niji was fulfilled in the initiative of bank embracing digital currencies, as he stated:
We are committed to proactively develop and deliver innovative solutions to our customers with their changing needs by combining cutting-edge digital technologies and our conventional trust bank expertise.