This week, the IT service provider and consultancy company, Nomura Research Institute (NRI) became the first platform to offer blockchain-based digital bonds directly to Japanese investors. The news falls-in-line with the group's overall goal to expand tokenization efforts in the Japanese market.
Specifically, NRI issued two bonds. The first bond was a 25M yen ($232,000) bond with a three-month maturity. Interestingly, this bond differs from traditional bonds in that there is no interest paid to holders. Instead, these “digital asset bonds” pay redeemable points. Importantly, the second bond does pay holders a low-interest rate. This bond saw a 5M yen issuance.
The Nomura Group Makes it Happen
In order to bring this important milestone to the Japanese market, NRI utilized multiple partnerships within its sphere. Specifically, Nomura Securities acted as the underwriter for the tokenized bonds. Additionally, BOOSTRY is the registry agent for the issuance. Importantly, last year NRI and Nomura created BOOSTRY as part of a joint venture. Interestingly, the firms started the BOOSTRY project back in 2015.
BOOSTRY's goal was to develop a blockchain platform for the exchange of securities. The tokenized asset platform under creation – ibet is to provide more efficiency, liquidity, and security to the market. Notably, the BOOSTRY project began with an $11M capital investment. Currently, Nomura has a 6% stake in the firm, while NRI holds a 34% share.
Nomura Crypto – NRI
The Nomura group continues to expand into the blockchain sector in a major way. In Q1, the Nomura Research created a cryptocurrency index to service the growing market demand. This month also saw the Nomura Institute of Capital Markets Research create a department specifically focused on blockchain financial instruments such as security token offerings (STO).
The goal of the group is to gather issuers, asset managers, settlement agencies, legal experts, and academics to focus on blockchain integration and its effects on the market. The group currently consists of some heavy hitters in the sector including
- Tokio Marine & Nichido Fire Insurance
- Nishimura & Asahi
- Mori & Tomotsune
- JCB, Daiichi Life Insurance
- Nomura Securities
- Nomura Trust
- Nomura Research Institute
- Mitsui and Mitsui Fudosan
- Nomura Asset Management
- Nomura Institute of Capital Markets Research
Investments into Blockchain – NRI
Last year, the company also invested in the smart contract development firm Omise Holdings, the parent company of OmiseGo (OMG) and GO.Exchange. The investment increased operations for the firm across a number of verticals. Additionally, the exchange Quantstamp secured funding from the firm on March 8, 2019. As part of the deal, the U.S.-based firm opened a subsidiary in Japan. Quantstamp provides an automated tool for developers and users that helps locate vulnerabilities in smart contracts. Also, the company offers auditing services for large-scale blockchain platforms.
Nomura Pushes Tokenization in Asia
Nomura continues to be a major advocate for tokenization in the financial sector. As such, the company is ideally positioned for the digitization of the markets. You can expect to hear more exciting developments from this team, as their projects continue to shape the Japanese market moving forward.