{"id":89889,"date":"2024-02-22T22:18:39","date_gmt":"2024-02-23T03:18:39","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89889"},"modified":"2024-02-22T22:18:40","modified_gmt":"2024-02-23T03:18:40","slug":"mitsubishi-ufj-rakuten-mizuho-to-launch-security-tokens","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89889","title":{"rendered":"Mitsubishi UFJ, Rakuten, Mizuho to Launch Security Tokens"},"content":{"rendered":"
\n
\n
\n
\n
\n

\n Last updated:<\/span>
\n

<\/figcaption>

Security tokens are set for a boost in Japan, where business giants including Mitsubishi UFJ, Mizuho Bank, and Rakuten will launch an offering that pays interest in \u201celectronic money.\u201d<\/p>\n

In a press release, the firms explained that the new ST\u00a0offering will take place on the blockchain-powered Progmat platform, with investors paid in Rakuten Cash tokens.<\/p>\n

Security Tokens Ready for Take-off \u2013 Japanese Firms Making Moves<\/h2>\n

<\/span>
Per the media outlet CoinPost, the offering will be Japan\u2019s \u201cfirst publicly offered bond whereby all interest, excluding taxes, is paid in electronic money.\u201d<\/p>\n

Rakuten Edy is a payments solution masterminded by Rakuten, one of Japan\u2019s biggest e-commerce and entertainment firms. The company also operates a fast-growing crypto exchange.<\/p>\n

Progmat, meanwhile, is the brainchild of Mitsubishi UFJ. The latter is Japan\u2019s biggest bank.<\/p>\n

Mitsubishi UFJ began piloting Progmat in March 2023, and has since teamed up with crypto and blockchain startups to launch stablecoin offerings.<\/p>\n

Rakuten\u2019s securities and payments arms will join the newest venture along with Mizhuho and two Daiwa Securities affiliates. Daiwa is Japan\u2019s second-largest securities provider.<\/p>\n

A Mitsubishi UFJ branch Shin-Yurigaoka, Tokyo. (Source: Suikotei [CC BY-SA 4.0])<\/figcaption><\/figure>\n

Blockchain-keen Japanese Firms Rushing into \u2018Digital Tokens\u2019 Space<\/h2>\n

<\/span>
The firms said that their first offering would be named the Daiwa Securities Group 1st Unsecured Security Token Bond (literal translation).<\/p>\n

The parties plan to release around $6.6 million worth of the security tokens, which will mature in a year.<\/p>\n

Currently, the tokens\u2019 interest rate is 0.8%, and investors have until March 21 to buy coins.<\/p>\n

The companies also said that in the \u201cfuture,\u201d they plan to \u201cuse the issuance of security tokens-powered bonds as an opportunity to provide new financing methods for issuers considering non-fiat interest payments.\u201d<\/p>\n

They also claimed that they plan to \u201ccreate attractive investment opportunities for investors.\u201d<\/p>\n

Further progress on the security tokens front is likely to be forthcoming from Rakuten\u2019s securities industry rival SBI.<\/p>\n

\n

Japan inches closer to allowing venture capital firms and other investment funds to hold digital assets directly https:\/\/t.co\/5On0UiIaWZ<\/p>\n

\u2014 Bloomberg Crypto (@crypto) February 19, 2024<\/a><\/p>\n<\/blockquote>\n

SBI has multiple crypto-related businesses both at home and abroad. These include an e-sports team that is paid in crypto and an SBI-branded crypto exchange.<\/p>\n

In 2020, SBI announced plans to create blockchain technology-powered digital securities exchanges.<\/p>\n<\/p><\/div>\n