Security Tokens Ready for Take-off – Japanese Firms Making Moves
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 “electronic money.” In a press release, the firms explained that the new ST offering will take place on the blockchain-powered Progmat platform, with investors paid in Rakuten Cash tokens.
Japanese Firms Joining Forces for Digital Asset Expansion
Per the media outlet CoinPost, the offering will be Japan’s “first publicly offered bond whereby all interest, excluding taxes, is paid in electronic money.” Rakuten Edy is a payments solution masterminded by Rakuten, one of Japan’s biggest e-commerce and entertainment firms. The company also operates a fast-growing crypto exchange. Progmat, meanwhile, is the brainchild of Mitsubishi UFJ, Japan’s biggest bank.
Mitsubishi UFJ began piloting Progmat in March 2023, and has since teamed up with crypto and blockchain startups to launch stablecoin offerings. Rakuten’s securities and payments arms will join the newest venture along with Mizuho and two Daiwa Securities affiliates. Daiwa is Japan’s second-largest securities provider.
Impact of the New Offering and Future Plans
The offering, named the Daiwa Securities Group 1st Unsecured Security Token Bond (literal translation), plans to release around $6.6 million worth of the security tokens, which will mature in a year. Currently, the tokens’ interest rate is 0.8%, and investors have until March 21 to buy coins.
In the “future,” the companies plan to “use the issuance of security tokens-powered bonds as an opportunity to provide new financing methods for issuers considering non-fiat interest payments,” and “create attractive investment opportunities for investors.” Further progress on the security tokens front is likely to be forthcoming from Rakuten’s securities industry rival SBI, which has multiple crypto-related businesses both at home and abroad.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
