Securitize Japan, a leading provider of tokenization solutions, has just announced a new endeavour with Sony Bank and Sumitomo Mitsui Trust Bank (SMTB) that will see the trio launch a tokenized ‘joint money trust backed by loan receivables' on the Securitize platform. In doing so, these companies hope to upend the existing financial landscape through the introduction of innovative tokenization efforts.
Details of the Trust
First off, the trio of companies underscores that ‘this is the first time in Japan that a joint money trust is tokenized and security tokens are sold by a bank'. They go on to note that the joint trust highlights two innovative features.
- the tokenization of a joint money trust backed by loans owned by Sony Bank, originated by SMTB;
- the sale of STs by Sony Bank as a Registered Financial Institution, which is permitted to conduct certain securities business.
The joint money trust, which is set to be built through the use of blockchain technology, will leverage Securitize's expertise in tokenization. In doing so, it should open a door toward enhancing liquidity, transparency, and accessibility in the traditional financial sector. Meanwhile, Sony Bank, a prominent player in the banking sector, will bring its expertise and digital banking capabilities to the partnership. Sumitomo Mitsui Trust Bank, a trusted financial institution will provide its deep industry knowledge and strategic guidance.
The tokenized joint money trust initiative offers numerous benefits for both investors and financial institutions. Through blockchain-based tokenization, fractional ownership and tradability of money trust assets become a reality. This means both increased liquidity, in addition to broadening access to a larger pool of investors. Transparency should also be enhanced through the immutability of blockchain records, allowing for auditability and accountability throughout the investment process.
Upon announcing this collaboration, representatives from Securitize Japan and Sony Bank each took the time to comment.
Eiji Kobayashi, Securitize Japan's Country Head, states,
“This collaboration involves a number of innovative aspects and marks another step forward for STOs in Japan, and we are pleased to play a role. Securitize will continue its efforts to expand the ecosystem of STO’s and help more investors and issuers enjoy its benefits”
Watanabe Takafumi, Managing Executive Officer and CFO of Sony Bank, states,
“Security Tokens are an innovative solution that opens up a wide range of investment possibilities for our customers. Sony Bank has added the offering of security tokens to its product lineup and is committed to becoming an asset management bank for individuals that provides optimal proposals to its customers,”
This collaboration is just the latest in a long string of tokenization efforts popping up around the world. It also highlights the continued and growing presence of Securitize within the digital securities sector, as the company and its global branches work to foster the adoption of its forward-thinking approach to capital markets.