Japanese Corporations Mitsubishi UFJ, Rakuten, and Mizuho Set to Introduce Security Token Offering

Security tokens are poised for an increase in Japan, where major corporations such as Mitsubishi UFJ, Mizuho Bank, and Rakuten are set to introduce an offering that provides interest in “electronic money.”

In a press announcement, the companies detailed that the new ST offering will occur on the blockchain-based Progmat platform, with investors receiving payments in Rakuten Cash tokens.

Security Tokens Primed for Launch – Japanese Corporations Taking Action

According to the media outlet CoinPost, this offering will mark Japan’s “first publicly offered bond where all interest, excluding taxes, is disbursed in electronic money.”

Rakuten Edy is a payment solution developed by Rakuten, one of Japan’s leading e-commerce and entertainment enterprises. The firm also runs a rapidly expanding cryptocurrency exchange.

Progmat, on the other hand, is the creation of Mitsubishi UFJ, which is Japan’s largest bank.

Mitsubishi UFJ initiated the Progmat pilot in March 2023 and has since collaborated with cryptocurrency and blockchain startups to introduce stablecoin offerings.

Rakuten’s securities and payment divisions will participate in this latest initiative alongside Mizuho and two affiliates of Daiwa Securities. Daiwa is the second-largest securities provider in Japan.

A Mitsubishi UFJ branch Shin-Yurigaoka, Tokyo. (Source: Suikotei [CC BY-SA 4.0])

Blockchain-enthusiastic Japanese Companies Entering the ‘Digital Tokens’ Arena

The companies indicated that their initial offering would be titled the Daiwa Securities Group 1st Unsecured Security Token Bond (literal translation).

The entities aim to issue approximately $6.6 million worth of security tokens, which will mature in one year.

At present, the interest rate for the tokens is set at 0.8%, and investors have until March 21 to purchase the coins.

The firms also mentioned that in the “future,” they intend to “utilize the issuance of security tokens-backed bonds as a means to offer new financing options for issuers contemplating non-fiat interest payments.”

They further stated their goal to “develop appealing investment opportunities for investors.”

Additional advancements in the security tokens sector are anticipated from Rakuten’s competitor in the securities industry, SBI.

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

— Bloomberg Crypto (@crypto) February 19, 2024

SBI operates several crypto-related ventures both domestically and internationally. These include an e-sports team compensated in cryptocurrency and an SBI-branded crypto exchange.

In 2020, SBI revealed intentions to establish digital securities exchanges powered by blockchain technology.

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