HomeNewsA Japanese bank launches the first 'a-1' rated security token

A Japanese bank launches the first ‘a-1’ rated security token

Sumitomo Mitsui Trust Bank (SMBT), a bank based in Japan has created its first asset-backed securities token on March 29. The token was created in partnership with a tokenization platform Securitize.

This is the first security token compliant with the Financial Instruments and Exchange Act to launch in the Japanese Market. Along with the “a-1 rating” backed by the Rating and Investment Information, A Japanese rating agency, the token is expected to fulfil its short-term obligations.

The creation of the token includes tokenizing paper-based beneficiary certificates representing investor ownership to an underlying asset. To manage the following investments, The bank has created a trusted company.

SMBT is a member of the Japan Security Token Association alongside regional giants like NTT and Softbank. The firm had been exploring Blockchain since October 2016 in a team-up with IBM. Their aim was to explore Distributed Ledger Technology (DLT) to improve the efficiency of its asset management, real estate and banking businesses.

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...