The CEO of SBI, one of Japan’s largest financial companies, announced its intention to jointly launch a platform for the exchange of tokenized securities (STO) during the current fiscal year.
According to the newspaper Jiji, SBI Holdings head Yoshitaka Kitao, who is also a strategic partner of Ripple and also a member of the board of directors, is in talks with several colleagues from the Japan Tokenized Securities Association for a joint STO launch.
Members of the association are the Monex Group, a securities platform that manages the Coincheck exchange. Also Rakuten, which deals with securities and cryptocurrency transactions.
Chinao said that within 2020, it is considering the possibility of creating a “private securities exchange company.” She also hopes to get permission from the country’s main financial regulator, the Financial Services Agency (FSA), which controls cryptocurrency exchanges, as well as securities management authorities.
The newspaper reports that the Japanese Association of Tokenized Securities is currently working on self-regulatory rules that are “aimed at protecting investors.”
Chinao also said that prior to the launch of the STO exchange, the first Japanese STO-based products are likely to be released as early as June or July of this year. At the initial stage, they will be traded on other platforms in anticipation of the launch of the new STO platform.
It was reported that in November 2019, SBI poured a 7-digit amount of money into the American platform of tokenized securities, which, inter alia, intends to partially use these funds to build its new Japanese office. In February, the music and electronic giant Sony indirectly invested in tokenization.
“Decisions on the tokenization of securities are increasingly promoted by various major financial institutions in the world. For example, recently the Mitsubishi UFJ financial group has also announced its joining this initiative.
The technology of tokenized securities provides higher efficiency and lower costs for large transactions. Global banks are also expected to support this trend. ”